"Temporary, Daily Workers, and New Hires Aged 60+ Lead... Increase in Ultra-Short Hour Jobs Too"

KCCI Releases Report on 'Three Key Features and Implications of Recent Employment Trends'

[Asia Economy Reporter Yu Je-hoon] Recently, in the domestic employment market, temporary and daily workers as well as those aged 60 and over are leading the increase in new hires, and there is also an analysis that ultra-short-time jobs and underemployed workers are increasing.

The Korea Employers Federation (KEF) announced this on the 6th through a report titled "Three Characteristics and Implications of Recent Employment Trends," based on the Statistics Korea's Economically Active Population Survey.

According to KEF, in the first quarter, the total number of wage workers decreased by 206,000 compared to the same period last year, but the number of workers with less than three months of tenure, which can be considered new hires, increased by about 36,000.

Looking at this by employment status, permanent workers showed no change compared to the previous year, while temporary and daily workers increased by 37,000. By age group, those aged 60 and over increased by 65,000, whereas those under 60 decreased by 29,000.

KEF stated, "Due to the prolonged COVID-19 pandemic, new hires in temporary and daily positions, which can flexibly respond to changes in economic conditions, have increased, and the expansion of government direct job projects is estimated to have led to an increase in new hires aged 60 and over."

Although the total number of employed persons decreased, ultra-short-time jobs of less than 15 hours per week actually increased. From the second quarter of last year to the first quarter of this year, total employment decreased by an average of 386,000 over four consecutive quarters, but ultra-short-time jobs increased by an average of 30,000. This trend was particularly evident among those under 60 years old and in workplaces with fewer than 300 employees.

Along with this, the number of unemployed persons with employment experience within one year also showed an increasing trend. Since the third quarter of 2019, the number of unemployed persons with a job search period of less than six months and those with employment experience within one year had been decreasing, but after the full onset of COVID-19 in the second quarter of 2020, this trend reversed to an increase, and the growth rate expanded over time. Notably, among the 218,000 total unemployed persons who increased in the first quarter of this year, 85.3% (186,000) had a job search period of less than six months. Additionally, 80.3% (175,000) were unemployed persons with employment experience within one year.

Underemployed workers also increased. In the first quarter of this year, the total number of employed persons decreased by 380,000 compared to the first quarter of last year, but the number of underemployed workers who could take on additional work in terms of hours increased by 252,000.

Lee Hyung-jun, Head of Employment and Social Policy at KEF, said, "The employment trend in the first quarter of this year showed a slight increase in new hires, but the increase was led by temporary, daily workers and those aged 60 and over," adding, "Overall, the quality of employment is deteriorating, and job search difficulties and employment insecurity are intensifying."

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