NABO Population and Employment Trends & Issues (No. 1)

Published on February 25, 2025
Published by Population & StrategyAnalysis Division

■ Population and Employment Trends and Sustainable Growth
   The “Population Trends” section confirms that while the number of births in Korea has recently rebounded, the nation has become a super-aged society. Social attitudes toward family formation have also improved somewhat. As of November 2024, marriages had grown YoY for the eighth consecutive month, and births had increased YoY for the fifth consecutive month. However, the number of births remained lower than the number of deaths for the 61st consecutive month, indicating a continued natural population decline. By January 2025, the working-age population was confirmed as shrinking, and the proportion of elderly individuals aged 65 and over exceeded 20%.
    The “Employment Trends” section highlights a YoY increase of 135,000 employed people, suggesting a modest recovery. However, trends varied significantly across industries and age groups. Employment continued to decline in construction and manufacturing. In addition, the employment rate dropped among those in their 20s and younger, while both the number of employed individuals and the employment rate increased for those aged 60 and older. In December 2024, both employment and job opening rates recorded a YoY decline. Meanwhile, the number of employed foreign workers has been on the rise since 2022.
   The “Sustainable Growth” section examines Korea’s performance on the health-related goals among the SDGs. While the country’s healthcare system is excellent overall, challenges remain, including rising healthcare costs driven by chronic diseases, disparities in health service satisfaction, and regional health inequalities—all of which must be addressed in light of the aging population.

■ Issue Analysis: Performance on the SDGs and Population Strategies
   In December 2024, Korea’s total fertility rate rebounded for the first time in nine years, coinciding with the country’s transition into a super-aged society. Addressing the declining birthrate and aging population requires a comprehensive assessment of societal factors. To this end, the “Issue Analysis” section examines the correlation between societal development, as measured by the SDG Index, and the total fertility rate, providing valuable insights.
    Compared to other OECD countries, Korea holds a relative advantage in areas such as zero hunger, health, decent work and economic growth, industry and innovation, responsible consumption and production, and institutions. However, the nation lags behind in gender equality, climate action, and ecosystem protection. An analysis of the correlation between the SDG Index and total fertility rates in OECD countries shows that while fertility rates tend to decline with economic growth, they may recover as sustained progress is made across a range of areas such as labor, education, welfare, and gender equality.
    The assessment of Korea’s progress on each SDG identified the need to mitigate disparities in the density and distribution of healthcare workers, as well as to reduce regional inequalities in healthcare access. In the education sector, a mismatch between individuals’ educational attainment and the level required for their employment was revealed, stemming from a competitive labor market. This, coupled with delayed workforce entry, may be contributing to lower fertility rates. In addition, low female labor force participation and underrepresentation in decision-making roles were identified as major barriers to gender equality in Korea. Toeffectively address low fertility and the aging society, the analysis underscores the necessity of promoting balanced, long-term societal development.