South Korea’s economically active population, which refers to those able and willing to work, is expected to decrease starting in 2030 due to factors such as the aging population, according to a new report.
The Korea Employment Information Service (KEIS) released its mid-to-long-term workforce forecast on March 17. KEIS predicts that the economically active population will increase by 248,000 between 2023 and 2033, a sharp drop compared to previous decades when the population grew by over 3 million from 2003 to 2013 and 3.09 million from 2013 to 2023. The growth rate will shrink to less than one-tenth of previous levels, turning negative starting in 2030.
The economically active population includes job seekers, representing the available “labor supply” in the market. The number of employed workers, which reflects the number of jobs, is expected to start declining in 2029. This figure represents only those currently employed, reflecting the “labor demand” from businesses.
Based on economic growth projections of 1.9%, KEIS estimates that the number of employed people will be around 29.55 million by 2033, while the economically active population will shrink to 28.72 million. This would create a shortage of 821,000 workers.
This labor gap, which was zero in 2023 and just 109,000 in 2025, is expected to widen significantly as the population decreases. KEIS noted, “The population is not only shrinking in numbers, but the proportion of older individuals is also rising, which will deepen labor supply constraints.”
The report highlights that worker shortages will be particularly severe in sectors such as retail, skilled agricultural and livestock jobs, education, and sales in the coming decade. KEIS emphasized that, “To address this shortage, it is essential to promote labor force participation among underutilized groups such as youth, women, and the elderly.”
