As South Korea experiences a demographic decline, the labor market must swiftly adapt to mitigate its economic impact. Expanding the participation of underutilized groups―such as older workers, people with disabilities, women, and immigrants―can help address its shrinking labor force. However, their underutilization stems from a complex interplay of multiple factors, and poorly designed policies for their economic engagement may lead to unintended consequences. A thorough, nuanced understanding of each group's unique challenges and circumstances is essential for setting realistic priorities for effective policy intervention.

For older workers, effective labor market integration demands both targeted support and phased, comprehensive labor market reforms. In an aging society, maintaining workforce participation or facilitating reintegration is increasingly important, even if individuals experience disabilities over their lifetime. Additionally, addressing the underutilization of women requires not only tackling work-family balance challenges during childbearing and childcare but also gender segregation across industries and occupations. Meanwhile, the growing presence of foreign-born workers, particularly long-term residents, should be carefully paced to minimize potential sociocultural disruptions.

Short-term policies (within five years) should prioritize productivity growth and attracting foreign talent. Mid-term initiatives (five to ten years) should focus on structural labor market reforms. Long-term investments (over ten years) should strengthen education and skills development while fostering gender inclusivity and social integration.

Abstract
Foreword
Summary (KOR)

Chapter 1. Introduction: The Labor Market in an Era of Demographic Decline (Joseph Han, Dohun Kim, Minsub Kim, Jongkwan Lee)
　Section 1. The Onset of Demographic Decline
　Section 2. Economic Implications of Population Decline
　Section 3. Underutilization of Human Resources
　Section 4. Searching for Labor Market Transformation for Efficient Human Resource Utilization
　References

Chapter 2. The New Senior Workforce and the Old Employment Structure (Joseph Han)
　Section 1. Population Aging and the Importance of Utilizing Older Workers
　Section 2. Economic Activity of the Elderly: Trends and Outlook
　Section 3. Labor Market Challenges for Older Workers: Long-Term Employment and Reemployment Barriers
　Section 4. Constraints on Labor Demand for the Elderly
　Section 5. In-Depth Analysis: Impact of Introducing Anti-Age Discrimination Laws
　Section 6. Policy Directions to Promote Labor Demand for Older Workers
　References
　Appendix

Chapter 3. Evaluating the Self-Sufficiency Effects of Direct Job Programs for People with Disabilities (Dohun Kim)
　Section 1. Introduction
　Section 2. Current Status of Persons with Disabilities
　Section 3. The Impact of Disability on Employment
　Section 4. Effectiveness of Publicly Funded Direct Job Programs
　Section 5. Policy Implications
　References

Chapter 4. Policy Directions to Enhance Women’s Labor Market Participation (Minsub Kim)
　Section 1. Current Supply of Female Labor
　Section 2. Key Dropout Points for Women in the Labor Market
　Section 3. Labor Market Entry Phase
　Section 4. Childbearing and Childcare Phase
　Section 5. Policy Directions to Strengthen Female Workforce Utilization
　References
　Appendix

Chapter 5. Immigration Inflows and Social Integration: Focusing on Social Capital (Jongkwan Lee)
　Section 1. Introduction
　Section 2. Recent Trends in Foreign Population Inflows to Korea
　Section 3. Literature Review on the Impact of Immigration Inflows
　Section 4. Data Description
　Section 5. Empirical Model
　Section 6. Empirical Analysis
　Section 7. Conclusion and Policy Implications
　References
　Appendix

Chapter 6. Conclusion: Transforming the Labor Market in Response to Demographic Decline (Joseph Han, Dohun Kim, Minsub Kim, Jongkwan Lee)
　Section 1. Labor Market Transformation to Overcome Underutilization of Human Resources
　Section 2. Comprehensive Policy Directions and Priorities