'Biniljari' Jobs Surge by 100,000 in 2 Years... 'Wage Increase → Inflation' Trigger

220,000 Vacant Jobs... 'Labor Shortage' Secondary Indicator
Shortage of Workers Across Manufacturing and Other Industries
Wage Increase Pressure Raises Inflation Concerns

As COVID-19 social distancing measures are eased and the economy recovers, the number of vacant jobs has surged by more than 100,000 compared to two years ago. While job openings are increasing, difficulties in hiring personnel are intensifying the 'labor shortage' across industries such as manufacturing. This labor shortage in companies is leading to wage increases, raising concerns that it could negatively impact already unstable inflation and thus burden the everyday economy.

According to employment and labor statistics on the 31st, the number of vacant jobs as of the end of last month was 220,817, a 41.7% increase compared to the same month last year. Compared to April 2020, when COVID-19 first spread (116,118 jobs), the number has risen by a staggering 104,699 jobs (90.1%) over two years. Since surpassing 200,000 in January this year, the figure has remained between 200,000 and 220,000 for four consecutive months, marking the first time since 2019. The scale is also the largest since 2017.

Vacant jobs refer to positions that are currently unfilled or can be newly hired within one month. While this increase is generally seen as a positive indicator during an employment recovery phase, it also means that companies are struggling to fill these positions. A Ministry of Employment and Labor official said, "A high number of vacant jobs means there are more positions ready for immediate work once people are found," adding, "It is also a supplementary indicator of the labor shortage."

The more severe the labor shortage becomes, the greater the pressure for wage increases. While this is good news for workers, if wages start rising amid a consumer price inflation rate exceeding 4%, as recently seen, it could lead to 'chronic inflation,' ultimately increasing the burden on ordinary citizens. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho also requested industry cooperation at the economic ministers' meeting the day before, stating, "A wage spiral could cause a vicious cycle of price increases," emphasizing the need to prevent wage hikes from undermining price stability.

However, the labor shortage and wage pressure have already spread across the industrial sector. In manufacturing, where the labor shortage is particularly severe, the number of vacant jobs jumped 26.7% over five months, from 54,877 in November last year to 69,512 last month. In shipbuilding and IT industries, growth has been hampered by shortages of skilled technicians and foreign workers, and small and medium-sized enterprises with fewer than 300 employees are increasingly struggling to keep factories running due to hiring difficulties.

Cho Dong-geun, an emeritus professor of economics at Myongji University, said, "The current inflation partly stems from the side effects of rapid minimum wage increases," adding, "As the number of large corporation workers earning over a billion won annually grows and wage hikes accelerate, it inevitably has a negative impact on inflation."

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