Last Year, Business Workers Increased by 0.7%... Second Lowest Since COVID-19 Pandemic

Workers in Business Establishments Increased by 84,000 in December
Lowest Growth Avoided but Trend Remains Sluggish
Ministry of Employment and Labor: "Construction Industry Still in Poor Condition"
Annual Indicators Also Show Continued Slowdown in Growth

The number of wage workers among all employed persons increased by only 80,000 last month. Due to sluggish construction industry and overall weak economy, the growth in the number of workers has slowed down. The average monthly number of business establishment workers last year also increased by only 0.7% compared to the previous year, continuing the sluggish trend. This growth rate is the second lowest after 2020 (-1.6%), when the spread of COVID-19 intensified.

The area around Gwanghwamun Square in Seoul.

Employment Market Stalls as Construction Slump Continues

According to the 'December 2024 Business Establishment Labor Survey Results' released by the Ministry of Employment and Labor on the 23rd, the number of workers in business establishments with one or more employees last month increased by 84,000 (0.4%) from the same month last year to 20,017,000. Although this increase was larger than the record low increase of 81,000 in October, the lowest in 44 months since March 2021 (74,000), the growth rate remained low.

Kim Jae-hoon, head of the Labor Market Survey Division at the Ministry of Employment and Labor, explained, "The construction industry has been in a bad situation for 4 to 5 months. The construction market is very weak, and the number of temporary daily workers has decreased significantly, resulting in an overall decline in the number of workers."

By employment status, the number of regular workers increased by 50,000 (0.3%), and temporary daily workers increased by 18,000 (1.0%). Other workers increased by 16,000 (1.3%). Other workers refer to those who receive no fixed salary but only service fees or sales commissions, or those who work without pay to learn the job.

By industry, the number of business establishment workers increased in the order of ▲health and social welfare services (92,000) ▲business facility management, business support, and rental services (21,000) ▲professional, scientific, and technical services (21,000). On the other hand, decreases were observed in ▲construction (-78,000) ▲wholesale and retail trade (-19,000) ▲accommodation and food services (-8,000).

The manufacturing industry, which accounts for about 19% of all industries, saw an increase of 5,000 workers. Within manufacturing, the number of workers increased in ▲other transportation equipment manufacturing (10,000) ▲automobile and trailer manufacturing (3,000) ▲chemical substances and chemical products manufacturing (2,000), but decreased in ▲textile product manufacturing (-5,000) ▲apparel, accessories, and fur product manufacturing (-3,000) ▲non-metallic mineral product manufacturing (-3,000).

Among all business establishment workers, except for other workers, the number of job entries and exits all decreased. Last month, the number of job entries was 834,000, down 12,000 (-1.4%) from the same month last year. The number of job exits was 974,000, down 13,000 (-1.3%). The job entry rate fell by 0.1 percentage points to 4.4%, and the job exit rate also decreased by 0.1 percentage points to 5.2%.

This month, citizens are passing through the Sejongno intersection in Seoul on their morning commute.

In November last year, the total wage per worker in business establishments with one or more regular workers was 3.8 million won, up 2.3% from the same month the previous year. The total wage per regular worker was 4.027 million won, an increase of 2.5%, but for temporary daily workers, it was 1.807 million won, a decrease of 2.9%. For temporary daily workers, wages decreased due to a reduced share of the relatively high-paying construction industry and reduced working hours.

The real wage per worker, adjusted for inflation, was 3.322 million won as of November last year, up 0.8%. After showing an increase since March (-0.2%), it seemed to decline in September (-1.9%) but maintained an upward trend in October (2.1%) and November. However, the growth rate has slowed. The nominal wage per worker was 3.8 million won, up 2.3% compared to the same month last year.

Workers Surpass 20 Million but Annual Growth Rate Drops Sharply

The average monthly number of all workers last year was 20.082 million, an increase of 143,000 (0.7%) from the previous year. Regular workers increased by 59,000 (0.4%), temporary daily workers by 62,000 (3.2%), and other workers by 22,000 (1.8%). Last year was the first time the average monthly number of business establishment workers exceeded 20 million.

The average monthly number of business establishment workers increased continuously from 18.409 million in 2020, 18.745 million in 2021, 19.536 million in 2022, 19.939 million in 2023, to last year, but the growth rate has declined since 2022 (4.2%). Looking at the time series from 2011, when related statistics began to be compiled, last year was the second lowest after 2020 (-1.6%), when COVID-19 began to spread.

Kim explained, "Employment was good after COVID-19, but as the economy worsened, employment trends also slowed down together." He added, "Not only the Business Establishment Labor Survey but also employment insurance statistics and the number of employed persons in the Economically Active Population Survey show almost similar trends."

By industry last year, the number of workers increased in the order of ▲health and social welfare services (88,000) ▲professional, scientific, and technical services (24,000) ▲business facility management, business support, and rental services (17,000), while decreases were observed in ▲accommodation and food services (-19,000) ▲construction (-16,000) ▲education services (-3,000).

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