[Exclusive] Moon Administration Records Highest Ever Non-Regular Workers... 'The Paradox of Protecting Regular Employees'

'Reducing Non-Regular Workers' Pledge Made... But Employment Reality Remains Unchanged
1.925 Million Fixed-Term Workers at End of 2018... Record High 13.2% Share
Only 1 in 10 Workers with Expired Contracts Last Year Converted to Regular Positions

[Asia Economy Reporter Kim Bo-kyung] Since the Moon Jae-in administration took office, the proportion of fixed-term workers (non-regular workers) among all workers has increased to an all-time high. Although the administration launched with a pledge to reduce non-regular workers, the reality has not improved. Analysts suggest that as regulations on regular workers tightened and labor flexibility decreased, companies instead increased fixed-term jobs, which are easier to dismiss.

According to the Ministry of Employment and Labor on the 24th, as of the first half of 2018, the number of fixed-term workers employed at workplaces with five or more employees surged to a record high of 1.925 million. This accounted for 13.2% of all workers, also marking an all-time high. As of the second half of last year, the number approached 1.8 million, representing 12% of all workers. Compared to 2015 (1.48 million, 10.6%) and 2016 (1.72 million, 12%) before the Moon Jae-in administration, the number of fixed-term workers increased and their proportion did not decrease. Considering workplaces with fewer than five employees, the scale and proportion of fixed-term workers are estimated to be even larger.

This data comes from the "Survey on Fixed-term Workers in Workplaces," published semiannually by the Ministry of Employment and Labor. It is a sample survey of 10,000 workplaces with five or more employees and targets fixed-term workers covered by the Act on the Protection of Fixed-term and Part-time Workers (Fixed-term Act). Fixed-term workers are defined as "workers who have signed employment contracts for a fixed period." This includes contract workers hired on one- or two-year terms, temporary workers, and daily workers, all considered non-regular workers. Fixed-term workers account for about half of all non-regular workers.

The increase in fixed-term jobs under the Moon Jae-in administration is attributed to the paradox of regulations on regular workers. Professor Jeon Bong-geol of Seoul City University said, "Even if the economy grows, companies' capacity to hire personnel is gradually decreasing," adding, "With regulations protecting regular workers reducing labor flexibility, the increase in fixed-term worker hiring seems inevitable." He also noted, "The government has promoted the conversion of non-regular workers to regular workers in the public sector, but their share in the overall market is not very large."

As of the second half of last year, by industry, the service sector employed 1.56 million fixed-term workers, more than seven times the 210,000 in manufacturing. Within the service sector, 1.16 million fixed-term workers were employed in other services, including health and welfare. A survey of about 41,000 workers whose contracts expired in December last year showed that only one in ten were converted to regular workers. Among those whose contracts ended, 31,000 (76.3%) left employment, 5,600 (13.7%) continued employment, and only 4,000 (9.9%) were converted to regular workers. The conversion rate to regular workers hovered around 10%, with 10.3% in 2017, 8.2% in 2018, and 9.9% last year. Furthermore, under the Fixed-term Act, fixed-term workers who have worked for more than two years should be considered regular workers. However, among 3,585 workers whose contracts expired after more than two years, only 595 (16.6%) were converted to regular workers, 1,667 (46.5%) had their contracts terminated, and 1,323 (36.9%) continued as fixed-term workers.

Non-regular workers have also been marginalized in national statistics. The fixed-term worker survey began in April 2010, initially conducted monthly until December 2013, then quarterly from 2014 to 2016, and semiannually from 2017. A Ministry of Employment and Labor official explained, "The statistics were started for use in policies aimed at improving the treatment of non-regular workers," but they are not officially announced to the media through press releases.

This content was produced with the assistance of AI translation services.