Impact of Reduced Working Hours... Number of Primary Earners Taking Side Jobs Increased by 110,000 in 5 Years

Average Number of Side Job Holders in Q1-Q3 This Year Hits Record High of 547,000
Notable Increase Among Elderly (69.7%) and Youth (37.2%)

[Asia Economy Reporter Han Yeju] The number of household heads working side jobs averaged 368,000 from the first to the third quarter this year, marking a 41.0% (107,000) increase over five years and reaching an all-time high.

According to an analysis of microdata from the Statistics Korea Economically Active Population Survey by the Federation of Korean Industries (FKI), the average number of household heads (heads of households) responsible for family livelihood who have side jobs was 368,000 in the first to third quarters of this year, accounting for 67.3% of all side job workers (547,000).

The total number of side job workers and household heads with side jobs had been declining since 2013 but shifted to an increasing trend from 2017 onward, except for 2020 when the COVID-19 pandemic hit. The numbers continued to rise until 2022. Over the past five years, the average number of total side job workers from the first to third quarters increased by 33.1% (136,000↑), household heads with side jobs increased by 41.0% (107,000↑), and the proportion of household heads among all side job workers rose from 63.5% in 2017 to 67.3% in 2022.

Comparing the average main job working hours and side job participation rates over the past 10 years from the first to third quarters, a trend was observed where side job participation rates increased as main job working hours decreased. Since the introduction of the 52-hour workweek system in 2018, side job participation rates have been on the rise. While main job working hours decreased from 35.7 hours in 2017 to 32 hours in 2022, side job participation rates increased steadily from 1.54% in 2017 to 1.95% in 2022, except for 2020 when the employment market was severely impacted by the COVID-19 crisis.

The FKI analyzed, "The increase in side job workers is influenced by multiple factors such as diversification of employment types due to industrial structural changes and the prolonged COVID-19 pandemic. However, since the introduction of the 52-hour workweek system in 2018, the rise in side job participation alongside the reduction in main job working hours suggests that workers tend to take on side jobs to compensate for income lost due to shorter working hours."

Looking at side job trends by age group over the past five years, high growth rates were seen among young adults in their 20s and 30s and the elderly. Based on the average from the first to third quarters, the number of side job workers in their 20s and 30s increased by 37.2%, from 78,000 in 2017 to 107,000 in 2022, while those in their 60s rose by 69.7%, from 76,000 to 129,000. During the same period, side job workers in their 40s and 50s increased slightly by 1.4%, from 216,000 to 219,000.

The FKI explained, "Young adults tend to secure additional income sources through accessible non-face-to-face platform jobs or part-time work due to relatively low wages and unstable employment. The elderly mainly engage in temporary or part-time jobs and supplement their livelihood income through side jobs."

Examining changes in side job workers across the top five employment sectors over the past five years, the 'Health and Social Welfare Services' sector saw the largest increase of 62.9% (22,000↑). This was followed by 'Construction' with a 40.0% increase (8,000↑) and 'Wholesale and Retail Trade' with a 24.5% rise (13,000↑). Meanwhile, 'Accommodation and Food Services' and 'Manufacturing' each decreased by 6.3% (2,000↓).

The FKI analyzed, "The rapid increase in low-wage public jobs in the health and social welfare services sector after COVID-19 made it easier for young adults and the elderly to access these jobs. The construction sector includes many temporary and daily jobs, and the wholesale and retail trade sector also has many unstable part-time jobs, which likely contributes to the tendency to take on side jobs. Conversely, the accommodation and food services sector saw a decrease in side job workers due to job losses caused directly by COVID-19, and the manufacturing sector also experienced a decline in side job workers due to slowed growth and overseas job relocation."

Choo Kwang-ho, head of the FKI Economic Headquarters, pointed out, "The shift to a non-face-to-face digital economy has expanded platform labor, creating an environment conducive to side jobs. However, in the current high inflation and high interest rate environment, many workers who have lost overtime pay due to working hour regulations and thus suffered real wage cuts are forced to take on side jobs." He added, "Ultimately, to improve workers' quality of life, it is necessary to ease various regulations, revitalize the private economy, and create sustainable, quality jobs."

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