Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Decent jobs in manufacturing, construction disappearing in Korea
By Park Jae-hyuk
By Park Jae-hyuk
The number of quality jobs in the manufacturing and construction sectors for breadwinners in their 40s dropped significantly during the second quarter. In contrast, the number of temporary positions for senior citizens, funded by the government through tax spending, increased sharply, distorting the nation's job market.
According to Statistics Korea, Thursday, the number of salaried jobs in construction and manufacturing during the second quarter decreased by 86,000 and 5,000, respectively, from a year earlier.
Following the diminishing number of positions in the construction industry, the number of jobs for those in their 40s also dropped by 26,000.
Although the economy added 464,000 jobs during the period, the increase was driven mostly by the public sector, which has offered part-time jobs for older workers, offsetting the significant loss of decent jobs.
The same data showed the number of jobs in the health and social welfare sectors went up by 162,000. The civil service and education sectors also added 67,000 and 47,000 positions, respectively.
As most jobs in those sectors were distributed to senior citizens, the number of jobs for those aged 60 and older skyrocketed by 228,000, accounting for about half of the overall increase. Statistics Korea attributed this to the administration's funding for job creation.
The government and unincorporated groups, such as alumni associations and religious organizations, added 165,000 jobs, showing the highest increase among enterprises of various types.
By gender, the number of jobs for women increased by 338,000, while that for men rose by 126,000. The outcome is attributed to the sharp increase in the number of jobs in the health and social welfare sectors which employ more women than men.
“Amid the lingering slowdown in the construction industry, the number of jobs decreased in the sector,” Statistics Korea director Park Jin-woo said. “However, the overall number of jobs increased, because demand has grown in the health and social welfare sectors and subscription to employment insurance has also became mandatory for those who work extremely short hours.”
Sung Tae-yoon, an economics professor at Yonsei University, however, criticized the government for the outcome, saying, “The decrease in the number of jobs for workers in their 40s indicates a collapse in the nation's manufacturing industry. This also seems to have negatively influenced the household sector.”
According to the statistics agency, the concept of “job” in the data differs from “employee,” as it means a certain position occupied by a worker. If a factory worker has a second job teaching students at private institutes at night, he is regarded as a single employee, but the number of jobs is counted as two.