Seoul:A recent analysis of South Korea's labor market reveals significant challenges faced by younger workers in securing stable employment, despite an overall increase in job numbers. Of the 113,000 additional wage earners recorded over the past year, an overwhelming 91.2 percent entered non-regular positions.
According to Yonhap News Agency, the number of non-regular workers reached a record 8.67 million in August, marking an increase of 103,000 from the previous year. These workers now represent 38.5 percent of all wage earners, the highest percentage since the current statistical tracking began in 2003, as reported by the Ministry of Data and Statistics.
Non-regular employees, often in part-time or temporary roles, earned an average of 2.11 million won (US$1,589) per month between June and August, compared to 4.05 million won for their regular counterparts. This resulted in a record monthly pay gap of 1.94 million won. However, excluding part-time workers narrows this discrepancy to 954,000 won, still indicating substantial disparities beyond differences in working hours.
The labor market's expansion at the margins is further complicated by Korea's aging population. The number of non-regular workers aged 60 and older rose by 135,000, surpassing the overall increase, with declines in younger age groups. Health and social welfare sectors have seen significant growth in non-regular employment, increasing by 112,000 over the year.
A study tracking individuals born from 1989 to 1998 found that those starting in regular employment spent an average of eight years and three months in regular, full-time work over the following decade. In contrast, those in non-regular jobs accumulated just three years and two months, with two additional years spent unemployed.
Employers, particularly in Korea's banking sector, prefer flexible staffing to manage costs amid digitization and branch closures. Between the end of 2022 and July 2026, regular staffing at major banks fell by 4,080, while non-regular headcount rose by 1,048. However, this shift may weaken institutional memory and oversight, potentially affecting service quality.
The government aims to address these pay gaps with a roadmap for equal pay for equal work by year-end and plans to introduce a "fairness allowance" for short-term public-sector workers starting in 2027. However, such mandates could inadvertently affect recruitment and outsourcing practices, potentially burdening younger workers.
Ultimately, achieving equal pay will remain a challenge if access to secure employment continues to narrow, highlighting the need for a labor market that balances growth with broad-based opportunity.