Even Without Office Jobs... Young People Avoid Industrial Complexes

Despite Efforts to Revitalize Government and Local Governments, Youth Account for Only 15% of Nationwide Industrial Complexes
Infrastructure Development Needed in Environment and Transportation...Youth Job Policies Must Address Job Seeker-Employer Mismatch

[Sejong=Asia Economy Reporter Kwon Haeyoung] It has been revealed that the proportion of young workers in industrial complexes nationwide is about one in seven. Since the current government took office, the number of quality jobs has decreased, leading to a surge in simple labor jobs, but young people are not flowing into industrial complexes where the proportion of production and technical jobs is high and working conditions are poor. Despite efforts to revitalize industrial complexes such as the Industrial Complex Overhaul and Smart Green Industrial Complex initiatives, experts point out that the mismatch between job openings and job seekers is unlikely to be easily resolved.

According to the "Analysis of Youth Attraction in Industrial Complexes" report by the Korea Industrial Complex Corporation on the 29th, as of 2018, the proportion of young workers aged 15 to 34 in all industrial complexes was 15.2%. Considering that the proportion of young insured workers engaged in manufacturing in the hinterland areas?referring to the cities, counties, and districts where the industrial complexes are located?is 27.7%, it means that the proportion of young workers within the industrial complexes is lower than that of the surrounding areas.

By region, the Chungcheong area had the highest proportion of young workers at 30.6%. In contrast, the proportion of this age group in industrial complexes in the Seoul metropolitan area, including Seoul, Gyeonggi, and Incheon, was only 15.5%. The Daegu-Gyeongbuk area accounted for 17%, while the Honam region and the Southeast region including Busan, Ulsan, and Gyeongnam accounted for 11.7% and 13.4%, respectively. Except for Chungcheong, all regions had a proportion of young workers in industrial complexes more than 10 percentage points lower than the proportion of young insured workers in manufacturing in the hinterland areas.

The higher absorption rate of young workers in Chungcheong compared to the metropolitan area is because companies preferred by young job seekers have concentrated there. Representative examples include the Osong Life Science Complex, a specialized advanced bio-industry complex, and the Ochang Foreign Investment Zone. The proportion of young workers in these two complexes was 36.4% and 59.4%, respectively, higher than the hinterland area's 35%.

On the other hand, within the metropolitan area, the proportion of young workers in the large-scale Banwol Industrial Complex was 13.1%, while the Siwha Industrial Complex and Incheon Namdong Industrial Complex were 10.9% and 12.3%, respectively, below the national average of 15.5%. Industrial complexes outside the metropolitan area, where domestic key industries such as automobile, shipbuilding, and steel are concentrated?such as Pohang (6.9%), Ulsan Mipo (14.9%), and Changwon in Gyeongnam (10.4%)?also showed low proportions of young workers.

The Korea Industrial Complex Corporation analyzed, "This is because many small and medium-sized enterprises based on simple repetitive tasks and low value-added industries are concentrated in industrial complexes," adding, "Due to aging and deterioration, working conditions are also poor, resulting in low preference among young people."

Experts point out that it is necessary to transform the image of industrial complexes, commonly called 'gongdan,' and prioritize improving working conditions. They also agree that fundamentally, active support for industry conversion and technological development in small and medium-sized enterprises is needed.

Hong Jinki, Senior Research Fellow at the Korea Institute for Industrial Economics & Trade, advised, "Current government and local government projects such as the Industrial Complex Overhaul and Smart Green Industrial Complex initiatives mostly focus on hardware construction or simply incorporate regional economic issues into industrial complex projects. In the era of the Fourth Industrial Revolution, conditions must be created for companies within industrial complexes to survive and gain competitiveness through strengthening the technological capabilities of small and medium-sized enterprises and supporting industry conversion. Only then can young workers be attracted."

The mismatch between the workforce desired at industrial complexes and youth employment policies is also a challenge to be addressed. The Industrial Complex Corporation pointed out in the report that the job mismatch phenomenon significantly affects young people's avoidance of industrial complexes. Currently, government youth employment projects are generally strongly focused on financial support, and individual projects such as education, training, and employment matching are fragmented, making it difficult to expect the synergy desired in the field.

Additionally, the image of industrial complexes, working conditions, and infrastructure such as transportation were identified as areas for improvement. The Industrial Complex Corporation stated, "Generally, industrial complexes composed mainly of advanced industries or with good working conditions have higher youth attraction rates," adding, "For example, improving the image of industrial complexes through new naming such as 'Seoul Digital Valley' and comprehensively improving working conditions, transportation accessibility, and convenience facilities in the hinterland areas are necessary."

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