Rehiring after retirement better than extending retirement age for boosting productivity: BOK report
Reemploying workers after retirement is more effective than simply extending the retirement age in keeping senior citizens more productive and active in the labor market, a central bank report said Tuesday. According to the report by the Bank of Korea (BOK), Korea's labor force is projected to shrink by 1.41 million workers over the next decade due to demographic changes, which is expected to reduce the country's gross domestic product (GDP) by an average of 0.33 percent per year. Under the circumstances, it is an urgent task to create a labor market where senior citizens work longer and more productively, but the extension of the statutory retirement age without wage adjustment would rather cause side effects, the BOK said. "If the retirement age is extended without reforming the seniority-based wage system and other market rigidities, we would continue to experience such side effects as a decline in youth employment, more early retirements and the dual structure in the labor market," Oh Sam-il, chief of the BOK's employment research team, said. "As of last year, about 38 percent of com
Apr 8, 2025By Yonhap