Baby boomers' economic participation rate hits record

SEOUL, April 9 (Yonhap) -- As baby boomers approach the age of 60, their record high economic participation rate has spawned concerns over a steep decline in future economic output upon their retirement, data showed Tuesday. The number of people aged 50 and above reached 7.41 million as of the end of last year, with their economic participation rate standing at 73.8 percent, the highest since 2000, according to the data by Statistics Korea and the Korea Exchange (KRX). The economic participation rate refers to the portion of the population that is economically active, which includes those who are unemployed with a willingness to work, among people aged 15 years and above. The rate for people in their 50s had come in at 68.7 percent, before it rose to 72.7 percent in 2010 and reached almost 74 percent in 2012. The economic participation data came as baby boomers, born between 1955 and 1963 in the post 1950-53 Korean War, now make up the bulk of the population in their 50s. Baby boomers in Korea are estimated to account for about 14 percent of the country's entire population. Such a large portion reaching the age of 50 and above boosted the economic participation rate, analysts said. However, their participation figure is expected to fall quickly from 2015, when the eldest generation born in 1955 turns 60 and starts to retire, with the younger baby boomers likely to follow suit. Market watchers said the predicted rush among baby boomers leaving the workforce will crimp the overall economy and hurt growth, urging the government to bolster support in job security such as a salary peak system and deferring retirement age. As of end-2012, the employment rate of people aged 50 and above stood at 72.2 percent, the highest since 2000, according to the data. elly@yna.co.kr (END)