S. Korea’s worker flows slowing due to change in structure: BOK report
SEOUL, South Korea's labor turnover rate has considerably slowed since the 2008 global financial crisis, a central bank report said Thursday, possibly indicating a rise in rigidity in the country's labor market.
According to the report from the Bank of Korea (BOK), the country's labor turnover rate came to 26.4 percent in the 2010-2018 period, slowing from 29.2 percent for the 2000-2009 period.
The labor turnover rate is the sum of the job finding rate and job separation rate over a given period and can show how frequently workers flow between employment and unemployment.
The drop in the labor turnover rate came from cuts in both the job finding rate and job separation rate, which means those employed were more likely to stay employed while the same was also true for those unemployed.
Evidently, the rate of employed workers staying employed has steadily increased from around 96 percent in 2010 to about 97 percent last year, while the rate of the unemployed staying unemployed also climbed from less than 55 percent to over 65 percent over the cited period, according to the report.
The report said the slowdown in the labor turnover rate may have been partly caused by structural changes in the local economy that include a rise in the number of highly educated workers and increased overseas production.
"It appears local companies' need for workers is growing in other countries due to offshoring of their production facilities, which may have contributed to the drop in worker flows here," it said.
"Still, a slowdown in worker flows may have an adverse impact on labor productivity," it added.
Source: Yonhap news Agency