South Korea is set to see shrinkage in both its workforce and its economically active population in 2028 as a result of its ultra-low fertility rate and rapidly ageing demographics, reports MSN.com, citing the Korea Employment Information Service (KEIS). The country will need an additional 900,000 workers by 2032 and maintain an annual growth rate of 1.9% to 2.1%. The report warns that failing to find these workers will restrain Korea's economic development.

The working-age population, that is, people over the age of 15, will increase by just 316,000 between 2022 and 2032, per the report, just one tenth of the increase seen between 2012 and 2022. The labour force is forecast to increase by 564,000 from 2022 to 2027 and then to decline by 248,000 from 2027 to 2032. Meanwhile, the employed population will reach 28.79 million in 2027 and then drop to 28.40 million employees by 2032. That will result in a net increase from 2022 to 2032, but one that is only one tenth of the growth seen in the prior decade.

The number of employees over the age of 15 is also forecast to begin to decline in 2028 from 62.1% in 2022 to 61.3% in 2032. Not only is the overall population shrinking, but the proportion of older adults is also increasing, which will further impact the workforce. The report said that the manufacturing, wholesale and retail industry will need a significant amount of additional workers as it is expected to see a downfall in employees in the future. The KEIS suggested various policies to better help young people, women and older adults to join the workforce.