Seoul – A new analysis of Statistics Korea's microdata reveals a troubling trend in South Korea's labor market: young workers in their 20s are experiencing the slowest wage growth among all age groups. Last year, their average monthly income rose by a mere 1.6%, the lowest increase in 11 years. When factoring in inflation, this translates to a real decrease in their purchasing power.
This sluggish wage growth contrasts sharply with older workers, particularly those in their 60s, who saw the highest wage increase at 5.8%. As a result, the income gap between young and old has widened significantly. Last year, workers in their 60s earned an average of 251.6만원 per month, 176,000원 more than those in their 20s. This marks a reversal from previous years, where young workers typically earned more than their older counterparts.
Several factors contribute to this phenomenon. The decline in quality job opportunities is a major concern. Large companies are increasingly shifting away from open recruitment in favor of hiring experienced workers, making it harder for young graduates to secure stable, well-paying jobs. The manufacturing sector, traditionally a source of high-paying jobs, is also seeing a surge in older workers, further limiting opportunities for young people.
Additionally, the rise of precarious, short-term employment is exacerbating the problem. Many young workers are forced to take on part-time jobs with low wages and limited benefits, making it difficult to build a stable career.
Experts warn that this trend could have long-term consequences for the Korean economy. "If young people are not provided with quality jobs, it will negatively impact both domestic production and consumption in the long run," says Ha Joon-kyung, an economics professor at Hanyang University. "We need to promote innovation and create more good jobs in various fields."
The government is facing increasing pressure to address this issue. Policymakers are exploring ways to create more quality jobs for young people and to support them in their transition to the workforce. However, it remains to be seen whether these efforts will be enough to reverse the current trend.
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