By Yoon Ja-young
The country’s young households are seeing their income remain stagnant, while those in their 50s and 60s saw their income increase last year. Youth unemployment and the deteriorating quality of jobs are expanding the gap between generations.
According to Statistics Korea, the households whose heads are 39 years or younger made on average 4.4 million won a month last year, which is 29,486 won more, or up 0.7 percent, from the previous year. That is the lowest increase since 2003 when the statistical office started compiling the data.
When considering that the consumer prices rose 1.3 percent last year, their overall buying power decreased.
The households of those in their 50s, meanwhile, saw their monthly average income increase by 7.2 percent to 5 million won last year. Those in their 40s also saw the income grow by 2.9 percent to 4.8 million won.
Economists explain that the youth unemployment rate and the worsening quality of their jobs are making their income stagnate.
The country’s youth unemployment rate stood at 9 percent last year, the highest ever. It contrasts with the overall job market condition, where the number of the employed increased by 533,000, the largest number ever.
The statistics showed that the most of the new jobs were taken by those in their 50s and 60s. The number of those in their 50s with jobs increased by 239,000 last year, and the figure for those in their 60s also jumped by 200,000. The number of the employed people in their 30s, meanwhile, dropped by 21,000.
Economists say that baby boomers, born between 1955 and 1963, are continuing to work after retirement as they don’t think they have prepared enough for life after retirement. Increasing numbers of middle-age housewives seeking part-time jobs have also helped increase the household income.
The young households are also suffering from debt. The households of those in their 20s had, on average, 15.6 million won in debt last year, up 11.2 percent from a year ago. Those in their 30s also saw their debt increase by 7 percent, to 52.4 million won. Those in their 40s or 50s, however, had their debt decrease.
“While the employment rate has improved, youth employment hasn’t done so,” said Kim Kwang-seok, a research fellow at the Hyundai Research Institute. “There should be a tailored employment policy to find them jobs, tackling the mismatch between the job market and the young jobseekers,” Kim said.