"Burdened by Part-Time Wages"... 4.37 Million Solo Business Owners, Highest in 15 Years

The number of 'solo' self-employed individuals working alone without employees has surpassed 4.37 million, marking the highest level in 15 years. This is attributed to increased raw material costs due to high interest rates and inflation, as well as rising ancillary expenses such as electricity, gas, and labor costs.

According to the supplementary survey on non-wage workers and economically inactive population released by Statistics Korea on the 1st, the number of non-wage workers, including the self-employed, was recorded at 6.724 million as of August this year. Among them, self-employed individuals without employees numbered 4.37 million, an increase of 34,000 over one year, reaching the highest level in 15 years since August 2008 (4.558 million).

Non-wage workers refer to a group distinct from wage workers such as office workers, including self-employed individuals and unpaid family workers who work without receiving wages in family-run businesses.

Self-employed individuals with employees (1.413 million) also increased by 59,000 during the same period. However, compared to the pre-COVID-19 level of about 1.5 million self-employed with employees, the number of self-employed individuals employing staff has decreased since before the pandemic. Unpaid family workers (940,000) set a new record low again following last year’s (996,000).

On the 22nd, a business owner is updating the menu with increased prices at a restaurant in downtown Seoul, where self-employed individuals are struggling due to soaring inflation. Photo by Mun Ho-nam munonam@

The proportion of non-wage workers among the total employed population was 23.4%, down 0.1% from the same month last year. A Statistics Korea official analyzed, "As traditional forms of family management decline, the overall proportion of non-wage workers is decreasing."

By age group, the proportion of non-wage workers was highest among those aged 60 and over (38.8%), followed by those in their 50s (27.0%) and 40s (19.0%). The average business operation period for all non-wage workers was 15 years, an increase of 2 months compared to the same month last year. The average operation (affiliation) period was highest for 20 years or more (29.6%), followed by 10 to less than 20 years (20.3%), and 5 to less than 10 years (19.2%).

During the same period, the economically inactive population, who are not engaged in economic activities, was 16.163 million, a decrease of 83,000 compared to the same period last year. Among them, 3.418 million people, accounting for 21.1% of the total economically inactive population, expressed an intention to find employment or start a business within the next year.

The most common reason for their desire to find employment or start a business was "to earn living expenses or pocket money" (72.6%). The preferred form of employment was wage work, accounting for 93.4%. The most desired average monthly wage upon employment was between 2 million and less than 3 million KRW (44.4%).

Among the economically inactive population, those categorized as 'resting,' who were neither preparing for employment nor engaged in household chores or childcare, numbered 2.322 million, an increase of 83,000 over one year.

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