Major South Korean companies are experiencing a simultaneous decrease in new hires and employee resignations. (Image courtesy of Yonhap)
SEOUL, Sept. 4 (Korea Bizwire) – Major South Korean companies are experiencing a simultaneous decrease in new hires and employee resignations, raising concerns about potential workforce stagnation, according to a recent analysis by the Leaders Index, a corporate analysis research institute.
The study, released on September 3, examined 128 companies among South Korea’s top 500 by revenue that submitted sustainability reports for 2024 and disclosed information on new hires and resignations. The findings paint a picture of a tightening job market in the country’s largest firms.
The total number of new hires among surveyed companies in 2023 was 165,961, marking a significant decrease of 21.2% from 2022′s 210,717 new hires.
This figure also represents an 11.6% drop from 2021, when 187,673 new employees were hired. The majority of surveyed companies, 63% or 81 firms, reduced their new hires, while only 37% or 43 firms increased their hiring.
Alongside the decline in new hires, the study also revealed a decrease in resignations. The average resignation rate in 2023 fell to 6.3%, down from 7.8% in 2022 and 6.8% in 2021.
In absolute numbers, total resignations in 2023 were 71,530, a decrease of 19.1% or 16,893 fewer resignations compared to the previous year.
The age distribution of new hires suggests a shifting landscape in employment preferences. New hires in their 20s, typically representing entry-level positions, decreased from 80,394 in 2021 to 72,476 in 2023, a drop of 9.8% or 7,918 fewer hires.
In contrast, hires aged 50 and above saw a significant increase, rising from 6,114 in 2021 to 9,457 in 2023, an increase of 54.7% or 3,034 more hires. The Leaders Index interprets this trend as evidence of companies’ growing preference for experienced workers.
Among different sectors, the IT and electronics industry experienced the most substantial reduction in new hires, with numbers falling from 70,645 in 2021 to 45,440 in 2023, a decrease of 25,205 positions.
Other sectors showing notable decreases include secondary batteries, distribution, IT services, trading companies, and petrochemicals.
M. H. Lee (mhlee@koreabizwire.com)
