Vol.34-No.09 September 1,1995
Regarding future labor supply and demand, the report predicts greater labor demand at a given growth rate due to progress in shortening working hours and the growing ratio of employed persons in services which require more labor than manufacturing. The labor population will grow from 66.45 million in 1994 to 68.46 million in 2000; but with fewer children and the swelling ranks of the elderly, it will show the first decline thereafter, falling to 67.45 million in 2010. Gross domestic product (GDP) is expected to grow 2.6-2.9 percent to around 3 percent till the year 2000 and hover at 2.1-2.4 percent till 2010 based on the assumption that the Basic Plan on Public Works Investment will be implemented and structural reforms such as deregulation and rectification of commercial practices will progress. Labor supply and demand will be thus balanced in the year 2000, the report concludes. In 2000 and beyond, the supply of and demand for labor will tighten due in part to the shrinking labor population, but unemployment will likely rise because of a mismatch in labor supply and demand between sectors and regions, the report points out.
To respond properly to the changing situation, the report proposes such measurer providing more job opportunities, improving treatment in the context of wages and working conditions and assuring individual workers employment opportunities which enable them to have something to work for. More specifically, it is necessary, first, to foster people who will be able to produce higher value-added industries; second, to consolidate supply-demand adjustment for smooth labor mobility; third, to review the system of treatment of middle-aged and older persons; and fourth, to provide an aid system which allows for a balance between career and family.
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