Rush hour (Image courtesy of Yonhap)
SEOUL, June 27 (Korea Bizwire) — The average South Korean worker earned 3.97 million won ($2,870) in April this year, working 165.5 hours for the month, according to new data released by the Ministry of Employment and Labor on Thursday.
While wages rose modestly, the outlook for core industries like manufacturing and construction continues to darken amid prolonged job losses and hiring freezes.
Real wages, adjusted for inflation, edged up just 0.6% year-on-year to 3.41 million won, while nominal wages rose 2.7%. Among sectors, finance and insurance led with an average monthly wage of 7.44 million won, followed by utilities at 5.89 million won.
At the other end of the spectrum, workers in hospitality and food services earned just 2.18 million won.
The gap between regular and non-regular workers also widened. Full-time employees saw their average pay rise 2.8% to 4.21 million won, working 174.2 hours, while temporary and daily workers faced a 3.1% drop in income to 1.79 million won, reflecting steep declines in the construction sector.
Employment in construction has been shrinking for 12 consecutive months, with 46,000 fewer workers in May compared to the same period last year—a 15.3% plunge.
“Construction normally has seasonal swings, but the downturn is now so entrenched that seasonal trends are no longer visible,” said Kim Jae-hoon, a senior official at the labor ministry.
South Korea’s construction industry is ramping up health and safety measures to protect outdoor workers from heat-related illnesses. (Image courtesy of Yonhap)
Manufacturing, which employs the largest share of workers across all industries, has seen job losses for 20 straight months since October 2023.
A young employee at a major manufacturing firm in Gyeongbuk’s industrial complex expressed disillusionment, citing competitive pressures from China and bleak prospects: “I’m now preparing to switch careers entirely.”
The broader job market also shows signs of contraction. The number of new hires and re-hires dropped 6.6% to 864,000 in May, while businesses cut their second- and third-quarter hiring plans by more than 50,000 positions compared to the same period last year—a 9.7% decline.
For job seekers, the situation is grim. One 30-something who recently quit a job at a small gaming firm after earning just over 2 million won a month said she has submitted over 50 resumes without success. “I think I’ll just take a break and figure out what to do next,” she said.
The most in-demand roles remain in administrative, sales, food service, transport, and mechanical maintenance jobs, accounting for the top five hiring categories. But overall, the chilling labor market signals deepening uncertainty for Korea’s working class.
M. H. Lee (mhlee@koreabizwire.com)
