Nearly 5 million in South Korea are "uncounted unemployed" as of June

[Photo by Lee Chung-woo]

Despite improving job data this year, nearly 5 million in South Korea have been without regular pay or work uncounted in the national statistics as of June.

According to an analysis of Statistics Korea data by Korea Economic Research Institute (KERI) upon request from Maeil Business Newspaper on Monday, 4.916 million Koreans are deemed de facto out of job, a record high since such data has become available since 2015.

The “unseen” unemployed are uncounted as they are unaccountable in the regular job data and category compiled by the Statistics Korea, referring to working-age adults who are not working now but wish to work, who are willing to look for a job, who are capable of working extra time, who cannot work due to various conditions as well as part-timers who wish to work longer hours.

The unseen unemployed in Korea surged 1.4 million between 2017 and first half of 2021, coinciding with the term of President Moon Jae-in.

The number had declined 124,000 between 2015 and 2016.

Experts noted that the rise reflect a fall in quality jobs due to factors such as economic downturn, increase in public sector jobs, 52-hour work week, and minimum wage hike that led employers to opt to increase part-time jobs instead of regular hires.

According to Statistics Korea data, the number of working age population between 15-64 has been on a decline by 100,000 every year since 2016. Of 50.13 million Koreans last year, 16 percent were seniors aged over 65 and working age population declined nearly 200,000 over the past year.

Cho Young-tae, professor at Seoul National University, said that there is a mismatch in job supply and demand where jobs sought by young and old people are different from what is offered in the market.

KERI analysis showed that between 2017 and 2020, the population aged 15-29 fell 452,000, those in 30s 469,000, and 40s 387,000. The number of uncounted unemployed over the same period increased 180,000, 179,000, and 200,000 in respective age group.

A decline in working population should lead to increased job opportunity in theory, but in Korea it had went the opposite.

Korea’s working age population declined from 36.2 million in 2017 to 35.75 million last year, accounting for 71.3 percent of total population.

Companies and employers have turned less eager to bolster labor force after the spike in labor cost and cutback in statutory working hours.

Minimum wage gained 41.6 percent from 6,470 to 9,160 won over the five years under Moon.

The Moon administration has been criticized for spending heavily on creating part-time jobs to prop up the employment figure.

The number of employees working more than 36 hours of work a week fell 1.44 million in June from four years ago while those working 17 hours or less gained 930,000 over the same period.

The number of payroll in private sector fell 151,000 while those jobs in public sector added 768,000.

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