Temporary jobs trap aging Koreans in working poverty

Nearly 2 million South Koreans aged 60 or older are working temporary jobs with contracts shorter than one year, the highest figure since data collection began in 1989. The surge highlights a deepening crisis as more than 7 million people remain employed beyond the statutory retirement age of 60. About three in ten of these older workers are in low-wage, short-term positions. Among those 70 and older, the number of temporary workers has risen by nearly 140,000 in the past year, approaching 1 million. The findings are based on a Dong-A Ilbo analysis of microdata from Statistics Korea.

Many older South Koreans continue working into their seventies not by choice but out of economic necessity. While more than 90 percent of those aged 65 and older receive pension income, the average monthly payment in 2023 was just 800,000 won. This amount is well below the minimum monthly living cost for a single household, which is 1.34 million won. South Korea also has the highest elderly poverty rate among OECD member nations, nearing 40 percent. These figures suggest that many seniors remain in the workforce simply to survive.

There is a positive aspect to seniors remaining in the workforce, particularly as South Korea’s working-age population shrinks due to low birthrates and an aging society. However, the prevalence of elderly workers in low-skill, repetitive jobs represents a significant loss for both individuals and the economy. One in five temporary workers is now 70 or older, underscoring the depth of the working-poor crisis among South Korea’s elderly.

At the same time, many younger South Koreans remain unemployed or have exited the labor force altogether, raising concerns about a generational reversal in employment trends. The labor force participation rate for those aged 60 and older has climbed to 49.4 percent, nearly matching the 49.5 percent rate for young adults.

Creating stable employment for older adults is essential not only to reinforce the social safety net but also to ease the financial burden on younger generations. South Korea must shift away from short-term, subsistence-level jobs and develop tailored opportunities that leverage the experience, skills, and knowledge of its aging population.