More steps needed to tackle demographic problems
Amid steady rises in incomes and living standards since the 1980s, the nation has been struggling with a shortage of workers mainly in the manufacturing sector. This was because Koreans began to shun so-called 3D jobs (dirty, difficult and dangerous). Given this, the government took steps to bring in migrant workers through programs such as the industrial trainee system in 1993 and work permits in 2003.
Notwithstanding such endeavors, however, the lack of workers showed no signs of abating especially in small and medium-sized enterprises (SMEs), while new problems emerged. Against this backdrop, the Yoon Suk-yeol administration has unveiled a package of measures designed to overhaul the current work permit system for the first time in 19 years. Belated, such a move still deserves welcome and acclaim.
The new device, initiated by the Ministry of Employment and Labor, focuses on how to manage migrant workers effectively to meet industries' growing demand. Thus far, foreign laborers were required to leave Korea once they worked for four years and 10 months. Yet they now can work for more than 10 years consecutively if they wish.
Migrant workers will also be able to work as maids, babysitters, and at logistics companies. The government also decided to offer employment opportunities to foreigners studying in Korea who are judged as displaying high vocational proficiencies.
In light of the rapid changes in the demographic structure arising from the low birth rate paired with fast aging, the extension of migrant workers' employment has become inevitable. The administration should double down on implementing the relevant policies properly while paying heed to the possible problems resulting from the new measures.
For starters, there should be in-depth consideration into the expenses needed for the welfare and education of foreign workers and their dependents and possible infringements of human rights, such as maltreatment and deferred wage payments.
Despite such concerns, however, it is high time for the nation to open its labor market further to cope with the worsening demographic problems. There should be comprehensive, pan-government steps toward the envisioned creation of an immigration agency, for instance. For this, the Yoon administration should seek cooperation from the opposition Democratic Party of Korea (DPK) as relevant efforts require the legislation of new laws.
Aware of the seriousness of the situation, the administration announced steps, Wednesday, to tackle the demographic issue through measures such as accommodating more migrant workers with vocational skills. Toward this end, the government plans to establish the immigration agency this year to map out overall immigration policies.
According to Statistics Korea, the nation's working age population will likely decrease by 9 million by 2040, while the number of elderly citizens will increase by the same number. The nation already began to see a natural population decline from 2020 with the number of new births falling below deaths. The agency said this natural drop will reach 100,000 in 2022.
The demographic decline may dampen the nation's growth potential. Should the current trend continue, Korea will register a potential growth rate at the zero percent level and the economy will stop growing in 20 years. Some experts warn against the possible depletion of the national pension and disappearance of rural villages as seen in the case of Japan.
Desperate to prevent such scenarios from occurring, previous governments spent 280 trillion won ($221 billion) over the past 15 years to raise the birth rate, but to no avail. In 2021, the fertility rate expected per woman in Korea reached only 0.81, the lowest in the world.
Now is the time to shift the policy toward elevating social and economic sustainability by securing relevant human resources, rather than sticking to the birth rate. A major shift in demographic policy is needed and the establishment of the immigration agency should be the starting point in this regard.
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