It says’job government’… ‘Quality of employment’ is getting worse
Tax-burdened Alba and short-term work increased by 2.13 million
It is estimated that the number of workers working 40 hours or more per week has decreased by 1.95 million over the past three years, resulting in a sharp decline in’quality jobs’. Job seekers at the Seoul Western Employment Center in Dohwa-dong are looking at the job information bulletin board. Reporter Kim Beom-jun [email protected]
According to the Moon Jae-in administration, 1.95 million’full-time (full-time) jobs’ working more than 40 hours a week have evaporated. The number of short-time workers under 40 hours a week increased by 2.13 million. It is interpreted as a result of a decrease in’quality jobs’ due to a slowdown in growth rate, an increase in the minimum wage, and the aftermath of the novel coronavirus infection (Corona 19), while the number of fiscal jobs supported by the government increased.
As a result of analyzing raw data on employment trends by National Statistical Office on the 21st, Rep. Yoo Gyeong-jun, the number of workers who worked more than 40 hours per week from 20.84 million in 2017 to 18.89 million last year, decreased by 1.95 million in three years. Over 40 hours per week is the standard for full-time workers classified by the Organization for Economic Cooperation and Development (OECD). It means a’full job’ working 8 hours a day, 5 days a week.
During the same period, the number of workers less than 40 hours per week increased by 2.13 million. Thanks to this, the total number of employed has increased by 180,000, but it is pointed out that full-fledged jobs have disappeared and the quality of employment has greatly deteriorated. This is in contrast to the fact that between 2013 and 2017 during the Park Geun-hye administration, the number of workers over 40 hours per week increased by 2.14 million and the number of workers under 40 hours per week decreased by 720,000.
The’Full-time Converted Employment Rate (FTE)’, an employment index that reflects working hours, is also rapidly dropping to 65.1% in 2017, 63.0% in 2018, 62.0% in 2019, and 58.6% last year based on the age of 15 and older. In the FTE employment rate, 1 worker worked 40 hours a week, 2 workers worked 80 hours, 0.5 people worked 20 hours, and so on. It supplemented the limit of the general employment rate index, which counts as one employed person even if they work one hour a week.
Looking at the OECD employment rate of FTEs aged 15 to 64, the UK rose from 68.4% in 2017 to 69.3% in 2019. During the same period, the US also rose from 67.5% to 68.9%. Korea fell from 72.3% to 69.0% over the same period. The decline was the largest among the 35 OECD countries.
Rep. Yoo said, “Excluding the optical illusion effect of expanding financial jobs, it turns out that the current employment situation has deteriorated to the worst in history.”
Dramatic decline in quality jobs,’blindfolded’ with public work… “Statistical snacking with tax”
1.95 million’full-time jobs’ over 40 hours a week evaporated in 3 years
The number of employed people increased by 180,000 over the three years from 2018, the year following the inauguration of the Moon Jae-in administration, to last year. The government is evaluating that it was saved considering the’employment shock’ caused by last year’s novel coronavirus infection (Corona 19). However, the increase in employment of 180,000 people was driven by a sharp increase in the number of short-time workers with less than 40 hours working week by 2.13 million. 1.95 million’full-time (full-time) jobs’ more than 40 hours a week have disappeared. It has been pointed out that removing the illusion of a rapid increase in workers for a short time has revealed the’unfamiliarity’ of the Korean job market.
De facto statistical analysis with short-time financial jobs
Experts pointed out three reasons why the current government’s employment quality has deteriorated significantly: △Expansion of government fiscal jobs (direct jobs) supply △ The aftermath of a sharp increase in the minimum wage △ The decline in quality private jobs due to the economic downturn.
Direct job expansion is the main culprit that made the job market look good by increasing the total number of employed. Direct jobs are short-term contract jobs created by the government by paying labor costs in taxes to the vulnerable. In most cases, the contract period is less than one year, and the working hours are less than 30 hours per week. They provide transportation guidance, pick up trash, and help with quarantine activities.
The government increased the supply of direct jobs from 617,000 in 2017 to 945,000 last year based on this budget. Last year, at least 300,000 more were supplied as an additional budget. Combined, last year’s supply amounted to at least 1.24 million. It has increased by more than 600,000 in three years. From 2011 to 2017, the increase was only 145,000 over the six years. Park Ki-sung, professor of economics at Sungshin Women’s University, said, “Even considering that the vulnerable class needs help, the supply of direct jobs is so high that they are at the level of’statistical analysis’ with tax.
The sharp increase in the minimum wage in fact served as an opportunity to mass-produce short-time workers by forcibly shortening working hours. The government raised the minimum wage by 16.4% in 2018 and 10.9% in 2019. The number of business owners reducing the working hours of employees has increased significantly, centering on small business owners who have increased the burden of labor costs. This is because workers with less than 15 hours per week do not have to pay the weekly leave allowance (paid holiday allowance that is received by completing working hours for one week). Among small and medium-sized security and cleaning companies, there have also been cases of dismissing employees at all because they cannot overcome the burden of labor costs.
In addition, the recession, which began in earnest from 2019, further increased the difficulty in employment. Kim Sang-bong, professor of economics at Hansung University, diagnosed, “As the current government made it difficult to get a full-time private job, the number of young people saying’let’s do part-time jobs’ has increased significantly.”
Overseas full-time workers increase
The employment rate over the age of 15 is the ratio of employed persons divided by the population aged over 15. However, the numerator employed here refers to a person who has worked for more than an hour per week. The concept that emerged as criticism that proper employment status was not reflected was’full-time converted employment rate (FTE)’. In this indicator, the number of employees is newly calculated according to the number of hours worked per week. If it is 40 hours a week, one person is employed, if it is 20 hours, it is 0.5 person, and if it is 80 hours, it is 2 people.
The employment rate of FTEs in the 20s in Korea fell from 59.2% in 2017 to 56.8% in 2019 and 52.5% last year. The employment rate of FTEs aged 15 and over is also showing a sharp decline, including 65.1% in 2017, 63.0% in 2018, 62.0% in 2019, and 58.6% last year. This indicator only fell from 66.5% to 65.1% from 2010 to 2017. The average working hours per week for those who are 15 years old or older also fell from 42.8 hours in 2017 to 39.0 hours last year.
Rep. Gyeong-joon Yoo pointed out, “It is not a natural reduction in working hours, but a’forced work balance’ created by the expansion of fiscal jobs, strengthening labor regulations, and the economic downturn.”
In response, the government and passports argue that “the short-term increase in workers is a global phenomenon.” However, the average FTE employment rate in the Organization for Economic Cooperation and Development (OECD) member states at the age of 15-64 rose from 64.2% in 2017 to 65.5% in 2019. During the same period, the US increased from 67.5% to 68.9% and the UK from 68.4% to 69.3%.
On the other hand, between 2017 and 2019, the employment rate of FTEs aged 15 to 64 in Korea fell 3.3 percentage points from 72.3% to 69.0%. The decline was the largest among 35 OECD countries. As of 2019, it was reversed in the UK (69.3%) and Sweden (69.5%).
Reporter Seo Min-joon [email protected]