Value context and insight. lkm@koreatimes.co.kr
Why people in their 40s keep losing jobs
By Lee Kyung-min
By Lee Kyung-min
The number of jobs for people in their 40s decreased in January for 51 consecutive months, remaining the only age group for which the number of positions decreased, data showed Wednesday.
This points to the growing need for the government to come up with tailored measures to help those affected find employment.
It needs more than the current job creation initiative defined by older people who have part-time jobs, long criticized as a stopgap measure to create a statistical illusion of employment growth.
Statistics Korea data showed the country added 568,000 jobs in January from the year before, hitting its highest since August 2014 when 670,000 jobs were added.
Yet 84,000 jobs were lost by the 40-somethings, and the loss was more than made up for by 507,000 jobs added by those aged over 60.
Experts said that the key culprit behind the misfortune for those in their 40s was a steady increase of layoffs for that age group amid prolonged economic downturn.
“Amid economic downturn, a growing number of firms, particularly in the manufacturing industry, are undergoing restructuring through downsizing,” said Yonsei University economics professor Sung Tae-yoon.
“Since the 40-somethings are the highest-paid group, they have become the main target of the layoffs,” he added.
No end in sight
An industry-wide downturn in manufacturing has led to the job losses, according to an economist.
“It seems there is no end in sight,” University of Seoul economist Yun Chang-hyun said.
“The slowdown in manufacturing started a couple of years ago, but the impact is apparently much more far-reaching, an inevitable result of the government's anti-business policies in the beginning of the Moon Jae-in administration.”
The government plans to introduce ways to help the 40-somethings in March, but the role of the government in job creating is by nature limited, according to another economist.
“Businesses create quality jobs and many of them have hit bottom over the past years due to the failed government policy,” Sung said.
Other than removing regulations and creating an environment conducive to long-term planning for corporate profit, little can be achieved by the government's job creation efforts.”
Gov't measure in March
The government plans to roll out job creation measures for the age group.
The Ministry of Employment and Labor said Feb. 11 a survey is underway of some 4 million people who had been disqualified from state-run employment insurance following layoffs.
The ministry is analyzing when and how they lost jobs and whether they made job seeking efforts and landed a new job as a result.
Similarly, a survey is ongoing of some 2,000 jobless people registered at state-run job match websites.
Consultations are ongoing in 47 different regions to better help identify the need of the jobseekers based on the industrial characteristics of each area.
The plan is expected to reflect the gradual yet apparent decline in the once-booming manufacturing sector and ways for the laid-offs to fully utilize their years of experience and skills to re-enter the job market.
Training programs will be organized to help those affected become more agile with technological changes in the workplace.