More workers seek side jobs amid soaring living costs

Companies concerned about falling worker productivity

By Kim Hyun-bin

A 39-year-old office worker surnamed Park is considering opening a self-service laundromat business to secure a source of secondary income apart from his main occupation. Although Park works for a major Korean business conglomerate, he is seeking to earn more money amid deepening economic uncertainties and rising living costs.

“Opening up unmanned shops has become a trend lately. You can find an unmanned shop in most neighborhoods these days. I myself am considering opening up an unmanned laundromat as it does not overlap with my main occupation and is a good secondary source of income,” Park said.

Like Park, an increasing number of workers are seeking to find an additional source of income as the rising cost of living and high interest rates take a toll on their pocketbooks leading them to pursue side jobs as relying solely on the monthly salary from their main jobs is increasingly difficult.

The prolonged economic downturn also poses a risk as companies face difficulties with even well-known firms such as Meta Platforms and Tesla cutting personnel expenses. Having a stable second source of income, even if it is smaller than their main occupation, is seen as a way for employees to secure additional money in case their primary source is suddenly cut off, despite the government's goal of increasing the productivity of individual workers.

According to a survey conducted by global consulting firm Deloitte, 46 percent of Generation Z (MZ) individuals in 44 countries worldwide have side jobs. Millennials (M) also had a high rate of side job participation, reaching 37 percent. Compared to the previous year, there was a 3 percent increase for Generation Z and a 4 percent increase for Millennials.

The situation in Korea is not much different. According to the "Status and Characteristics of Side Jobs" survey conducted by the Korea Employment Information Service, the number of individuals with side jobs is on the rise across all age groups, particularly among the highly educated.

While previous side jobs mainly served as a means for low-income individuals to make up for insufficient income from their main occupation, recent side jobs are spreading to groups classified as "high-quality jobs" by government standards.

The participation rate of high-income individuals in side jobs is also increasing. The proportion of individuals earning more than 2 million won ($1,539) per month in their main occupation who engage in side jobs increased from 39.7 percent in the first half of 2015 to 54.7 percent in the first half of 2021, a surge of 15 percent.

From the perspective of companies, there is still a lack of acceptance of employees holding side jobs. Most companies include a clause prohibiting side jobs in their employment contracts.

“Moonlighting is considered a violation of internal personnel regulations as it not only breaches company policies but also hampers employees' focus on their primary responsibilities, adversely impacting the company's performance. Therefore, it should be thoroughly investigated and strictly prohibited,” an official from a major conglomerate said.

However, some industry officials believe it should be allowed as long as it does not interfere with daily tasks.

“We respect personal freedom as long as it does not interfere with work and does not violate company regulations. However, we encourage avoiding side jobs if there is a possibility of violating regulations or causing harm to the company and colleagues,” another official at a major conglomerate said.

Nevertheless, the number of people moonlighting in side jobs continues to rise. However, this trend of increasing side jobs raises concerns about the overall productivity of the country. While Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho consistently emphasizes the urgent need to improve productivity in Korea, employees, as the main agents of production, are seeking alternative paths.

According to the Federation of Korean Industries, when the total factor productivity of the U.S. is set as 1, Korea's total factor productivity is only 0.614. This means that Korea's productivity efficiency is only 61 percent compared to the U.S. The labor productivity of Korea, as announced by the World Bank, also remains at the level of 50 percent to 60 percent of advanced countries.