September Sees 110,000 Increase in Business Workers... Real Wage Growth Continues for 5 Months

The number of business establishment workers last month increased by 112,000 compared to the same month last year, marking the smallest increase in 42 months. The growth rate was 0.6%, remaining in the 0% range since May. Real wages rose by 1.6% as of August and have been increasing for five consecutive months.

On the 21st, citizens are heading to work near Gongdeok Five-way Intersection in Mapo-gu, Seoul. Photo by Kang Jin-hyung

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According to the "September 2024 Business Establishment Labor Survey Results" announced by the Ministry of Employment and Labor on the 31st, the number of workers in business establishments with one or more employees reached 20,135,000 at the end of last month. This is an increase of 112,000 (0.6%) compared to the same month last year (20,023,000). Since May, the monthly growth rate has remained in the 0% range, and following August, September also showed a sluggish trend with a growth rate of only 0.6%.

By employment status, the number of regular employees increased by 27,000 (+0.2%) to 16,830,000 compared to the same month last year, temporary and daily workers rose by 55,000 (2.8%) to 2,039,000, and other workers increased by 30,000 (2.4%) to 1,265,000. 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, workers increased in health and social welfare services (92,000, 3.9%), professional, scientific, and technical services (20,000, 1.5%), and business facility management, business support, and rental services (20,000, 1.6%). Conversely, workers decreased in accommodation and food services (27,000, 2.3%), construction (23,000, 1.6%), and wholesale and retail trade (14,000, 0.6%). Among all industries, manufacturing, which has the largest share of workers, remained similar to the same month last year.

By size, the number of workers in establishments with fewer than 300 regular employees was 16,742,000, an increase of 91,000 (0.5%). Workers in establishments with 300 or more regular employees also increased by 21,000 (0.6%) to 3,393,000. Both types of establishments showed slight increases in the number of workers, but the growth was smaller than the same month last year (1.5% for fewer than 300 employees, 2.1% for 300 or more employees).

Last month, the number of new hires was 911,000, a decrease of 84,000 (8.5%) compared to the same month last year. The number of separations was 888,000, down by 78,000 (8.1%). The hiring rate (4.8%) and separation rate (4.7%) also declined, falling by 0.5 percentage points and 0.4 percentage points, respectively. By size, while both new hires and separations decreased in establishments with fewer than 300 regular employees, establishments with 300 or more employees showed growth rates in the 1% range for both.

The average monthly total wage per worker was 3.87 million KRW as of August, an increase of 3.4% (128,000 KRW) compared to the same month last year. Both regular employees (4.111 million KRW) and temporary and daily workers (1.782 million KRW) saw total wages increase by 3.6% and 1.2%, respectively. Industries with high total wages included finance and insurance (6.649 million KRW) and electricity, gas, steam, and air conditioning supply (5.8 million KRW).

Real wages, adjusted for inflation, were 3.379 million KRW as of August, an increase of 1.4% (46,000 KRW) compared to the same month last year. Except for January (-11.1%) and March (-0.2%) this year, real wages have continued to rise. Nominal wages recorded 3.87 million KRW for the same period, up 3.4% (128,000 KRW).

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