8 out of 10 People Say "Job Prospects This Year Are 'Bleak'... Worse Than Before COVID-19"

Korea Economic Research Institute Survey on Job Outlook Among 1,000 Adults Aged 18 and Over
"Need for Deregulation of Businesses and Labor Market Flexibility"

Source=Korea Economic Research Institute

[Asia Economy Reporter Kim Heung-soon] Seven to eight out of ten Koreans have a negative outlook this year, expecting employment conditions to worsen and wages not to rise. Despite various regulations, many still consider real estate the most effective investment method.

According to the "Public Perception of Job Prospects" survey conducted by the Korea Economic Research Institute (KERI) under the Federation of Korean Industries on the request of the polling agency Mono Research, targeting 1,000 men and women aged 18 and older nationwide, 77.3% of respondents said employment conditions this year would deteriorate compared to before the COVID-19 pandemic (2019). Notably, among respondents in their 20s, 53.2% predicted that employment conditions would "significantly worsen," exceeding the majority. The response "will significantly improve" was 0%, indicating that young people view the situation most pessimistically.

The industry expected to see the greatest increase in jobs was semiconductors (21.4%), followed by new businesses such as bio industries (20.6%). The industry expected to see the largest decrease in jobs was accommodation and food services (22.5%), followed by machinery, shipbuilding, and steel (17.4%), and construction (14.5%), all showing poor prospects.

Employment Deterioration Triggered by COVID-19
"Solution is Deregulation of Corporations"

Survey respondents cited the prolonged COVID-19 pandemic (45.3%) as the main cause of worsening employment conditions. This was followed by strengthened corporate regulations by the National Assembly and government (26.3%), government pro-labor union policies (10.7%), poor corporate management performance (10.5%), and lack of new growth engine industries (7.2%). As measures to improve employment conditions, deregulation of corporations (24.9%) was ranked first, followed by labor market flexibility such as diversification of work types (21.9%).

By age group, respondents in their 20s emphasized corporate deregulation (25.0%) and expansion of incentives for companies increasing employment (21.2%). Those in their 40s highlighted support for fostering new industries (21.8%) more than other age groups. Respondents in their 60s showed a high proportion for corporate deregulation (27.3%) followed by expansion of public jobs (19.5%).

Source=Korea Economic Research Institute

About 7 out of 10 Say "Wages Will Remain Flat"
"Real Estate is the Promising Investment"

About 7 out of 10 respondents (68.9%) expected that wages would not rise as much as the inflation rate this year. The most important factors for future income improvement were ▲investment such as stocks and real estate (32.9%) ▲enhancement of work capabilities and promotion (14.9%) ▲starting a business (9.1%) ▲changing jobs (7.8%), with others accounting for 35.3%.

The most promising investment method was real estate (30.1%), followed by stocks (28.4%), others (16.6%), tangible assets such as gold and copper (8.3%), savings and deposits (6.8%), cryptocurrencies (6.1%), and foreign currency (3.7%). Regardless of gender and age, real estate and stocks were identified as the most promising investment methods. Men preferred real estate (30.9%), while women favored stocks (32.3%). By age group, those in their 30s (33.4%), 50s (30.4%), and 60s (31.1%) chose real estate, while those in their 20s (40.0%) and 40s (28.9%) selected stocks as the most effective investment method. It is also notable that among those in their 20s, cryptocurrencies (9.5%), which have recently seen an investment boom, were chosen following stocks and real estate.

Choo Kwang-ho, head of the Economic Policy Office at KERI, said, "Despite the easing of COVID-19, the public still has a negative outlook on employment conditions, which indicates that the growth momentum of our economy has significantly weakened. Reflecting public expectations, deregulating regulations that hinder job creation and lowering entry barriers for vested interests to create a flexible employment market should be prioritized."

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