Job losses hit 40s and 50s, middle-class savings shrink

Last month, employment among individuals in their 40s and 50s in the manufacturing, construction, and retail sectors dropped to the lowest level in 12 years. As employment in these key industries—traditionally a major part of the overall job market—declines, concerns are growing that the "backbone" of the South Korean economy is beginning to falter. Meanwhile, due to factors such as real estate purchases and education expenses, the disposable income of middle-class households has fallen to its lowest point in five years.

According to an analysis of microdata from Statistics Korea by The Dong-A Ilbo on Monday, the number of workers in their 40s and 50s employed in manufacturing last month was 2.227 million—the lowest since relevant data became available in 2014. This represents a decrease of 42,000 compared to the same period last year. Employment in the construction and retail sectors also dropped by 129,000 and 34,000, respectively, year-on-year. For each of these industries, the number of employed individuals hit a 12-year low for February.

This trend is being attributed to the prolonged stagnation in domestic demand amid demographic shifts, which are now affecting even the primary breadwinners in many households. “In recent corporate restructuring efforts, people in their 40s and 50s have been the main targets," Lee Jung-hee, an economics professor at Chung-Ang University, noted. "Since this age group typically bears the highest household expenses, their job insecurity is inevitably leading to a retirement crisis.”


세종=김수연 기자 syeon@donga.com