"Involuntary Part-Time Workers Increase Faster Than Wage Workers Over 10 Years... Rise in Livelihood-Type"

[Asia Economy Reporter Jeong Hyunjin] A claim has emerged that the qualitative level of domestic employment is deteriorating as the growth rate of involuntary part-time workers over the past decade has significantly outpaced the growth rate of wage workers. It was found that 6 out of 10 involuntary part-time workers last year were 'livelihood-type' workers who sought jobs due to immediate income needs.

On the 21st, the Korea Economic Research Institute under the Federation of Korean Industries analyzed Statistics Korea data and found that the average annual growth rate of involuntary part-time workers among the working-age population (ages 15-64) over the past decade (2010-2020) was 3.6%, which is 2.8 times higher than the average annual growth rate of all wage workers at 1.3%.

(Data provided by Korea Economic Research Institute)

The number of involuntary part-time workers increased from 772,000 in 2010 to 853,000 in 2015, then decreased to 798,000 in 2016, before turning upward again from 2017 and rising sharply to 1,104,000 last year. Over the past decade, the increase amounted to 332,000 people, a growth rate of 43%.

By age group, involuntary part-time workers aged 50 and over showed the highest growth rate, increasing from 238,000 in 2010 to 487,000 last year, with an average annual growth rate of 7.4%. Following them, the youth group aged 15-29 increased by an average of 4.3% annually over the past decade, reaching 309,000 last year, and those in their 30s rose from 116,000 in 2010 to 125,000 last year, with an average annual increase of 0.8%. During the same period, the number in their 40s decreased by an average of 1.6% annually.

The Korea Economic Research Institute stated, "Since 2017, factors such as a sharp rise in the minimum wage increasing labor costs and a worsening employment capacity due to economic downturns have contributed to the increase in part-time work." It added, "Last year, while wage workers decreased by 258,000 compared to the previous year due to the COVID-19 pandemic, involuntary part-time workers increased by 3,000." It further explained, "Youth have been pushed into unwanted part-time work due to severe employment difficulties, and those aged 50 and over due to early retirement and voluntary retirement."

(Data provided by Korea Economic Research Institute)

Looking at the proportion of involuntary part-time workers by reason over the past decade, the share of those who needed immediate income such as living expenses increased by 5.1 percentage points from 58.7% in 2010 to 63.8% in 2020. This means they are livelihood-type workers who sought jobs due to immediate income needs. Additionally, the share of those who had no jobs in their desired field or matching their career rose by 3.4 percentage points from 15.1% to 18.5%. However, during the same period, those balancing studies or job preparation and those balancing childcare or housework decreased by 3.7 percentage points and 3.1 percentage points, respectively.

Examining livelihood-type part-time workers in detail, the youth group (ages 15-29) showed the highest growth rate, increasing from 57,000 in 2010 to 154,000 last year, with an average annual growth rate of 10.4%. Following them, those aged 50 and over rose from 182,000 to 375,000, recording an average annual growth rate of 7.5%. This contrasts with the 30s and 40s age groups, where livelihood-type part-time workers decreased by an average of 0.9% and 2.4% annually, respectively, during the same period.

The Korea Economic Research Institute analyzed, "Over the past decade, livelihood-type part-time workers increased fastest among the youth, which reflects the impact of a shortage of quality jobs leading to longer job search periods and more young people covering living expenses through part-time jobs."

Compared to OECD countries, Korea has a relatively high proportion of involuntary part-time workers. Last year, the proportion of involuntary part-time workers among all part-time workers was 49.3% in Korea, ranking 4th among 33 OECD countries after Italy (64.5%), Greece (62.0%), and Spain (51.9%).

Choo Kwang-ho, Director of Economic Policy at the Korea Economic Research Institute, emphasized, "The sharp increase in involuntary part-time workers over the past decade indicates that there were not enough jobs that job seekers wanted." He stressed, "Rather than policies focused on expanding public jobs, efforts should be made to enhance private sector employment capacity through deregulation of businesses and expansion of employment flexibility to create quality jobs."

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