Young Workers in Simple Labor Jobs Like Cleaning and Delivery Surpass 600,000 by May This Year

Analysis of Microdata on Employment Trends by Statistics Korea
Average Monthly Employment from January to May Increased by Over 26% Compared to 2017
Employment in High-Paying Jobs Such as Professionals Has Rather Decreased
Job Quality Rapidly Deteriorated Due to Policies Like Sojusung
Employment Market Stimulation Policies Using Fiscal Expansion Show 'Backfire' Effects

[Sejong=Asia Economy Reporter Moon Chaeseok] Since the inauguration of the Moon Jae-in administration, the number of young people aged 15 to 34 employed in simple labor jobs such as cleaning and construction has surged by more than 20% over four years. Although the form of jobs has changed with an increase in special employment types, the quality of jobs has rapidly deteriorated due to a decline in corporate incentives to hire, caused by policies such as income-led growth. Notably, the number of young people employed in professional and office jobs decreased during the same period, suggesting a reduction in quality jobs.

According to an analysis of Statistics Korea's employment trend microdata by Asia Economy on the 29th, the average monthly number of young people employed in simple labor jobs from January to May 2017, just before the Moon administration took office, was 474,000, which increased to 599,000 during the same period this year, a 26.4% rise. According to Statistics Korea's occupational classification, simple labor includes construction, transportation (such as delivery), manufacturing, cleaning and security, domestic and food service, and agriculture, forestry, and fisheries jobs.

The increase in simple labor employment can be interpreted as a deterioration in the quality of youth jobs. This is because the economically active youth population and employed youth have been decreasing annually due to low birth rates. The average monthly youth employment from January to May decreased from 6,521,000 in 2017 to 6,281,000 this year. The number of young people employed in so-called "quality jobs," such as professional and office positions, also declined from 3,543,000 to 3,317,000 during the same period. A Statistics Korea official explained the increase in simple labor employment by saying, "It is far from quality jobs," but added, "The number of workers increased as conditions improved in sectors like construction."

The rise in simple labor workers reflects not only a change in young people's perception, such as wanting to work multiple jobs, but also indicates that the current government's employment policies, which create jobs by increasing fiscal spending, have not been effective. This year's job budget under the current administration is 30.5 trillion won, about twice the 15.9 trillion won allocated in 2017, the first year of the administration. However, young people are being pushed into low-wage, simple job sites.

Private companies responsible for employment are hesitant to create jobs due to policies like income-led growth and the forced implementation of the 52-hour workweek. Employment and Labor Minister Ahn Kyung-duk pleaded with HR executives of 30 major companies yesterday to "increase open recruitment."

As a measure to increase youth employment, the government plans to implement the ‘Youth Employment Special Incentive’ program starting next month, which will provide private companies with 750,000 won per month for up to one year if they hire young people as regular employees. Professor Geum Jae-ho of Korea University of Technology and Education said, "Ultimately, it is companies that create jobs," adding, "As long as policies that reduce employment flexibility are pursued, it will be difficult to increase quality jobs."

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