High Inflation Hits Labor Market Too... Marginalized Groups Sigh Deeply Ahead of Chuseok

Last Construction Site Labor Market Before the Holiday
Over 100 More Workers Gather Than Usual
Often Return Home Due to Lack of Work
High Prices Increase Expenses
"Planning to Spend This Holiday with Local Acquaintances"

At around 5 a.m. on the 8th, hundreds of workers looking for construction site jobs were waiting at the Namguro Station intersection in Guro-gu, Seoul.
Photo by Oh Gyumin moh011@

[Asia Economy Reporter Oh Gyumin] “Two people, hurry up and get on. You're late.”

At 5 a.m. on the 8th, at Namguro Station located in Guro-gu, Seoul. From 300 meters before the Namguro Station intersection, where many manpower offices are concentrated, dozens of vans were lined up. This was because the last construction site labor market before the Chuseok holiday was being held. Usually, about 600 people wait here, but around 700 people had gathered. Most were in their 60s. They talked while looking at the hundreds gathered across the street, saying, “There’s no work these days.” The average daily wage is 150,000 KRW. If they have skills like plastering, they can earn up to 200,000 KRW a day, so they were waiting for vans to take them.

Although this was the first holiday without social distancing, the labor market also faced a recession due to high inflation. People who found it difficult to find work turned back and went home.

Those who found work were waiting for vans. They had to arrive early at the construction site starting at 7 a.m. and eat breakfast by 6:20 a.m. A daily laborer who has been working in the labor market for six years said, “Since yesterday (the 7th), more people have come, but since there is no work here during Chuseok, many people seem to have come up from the provinces.” While talking with the reporter, he couldn’t take his eyes off the street. When he spotted a silver van, he said he had to get on, quickly grabbed his bag, and got in. The manpower team leader in the van shouted, “You’re already late. Hurry up and get on.”

At around 6:40 a.m. on the 8th, dozens of people waiting to find jobs gathered at the Namguro Station intersection in Guro-gu, Seoul.
Photo by Oh Gyumin moh011@

Most workers said that work had decreased. Mr. Choi (66), who visits Namguro Station three times a week for two years, sighed, “Even though I work occasionally, I haven’t been able to work much lately.” This week, he spent his third morning here, but the money in his hand was 140,000 KRW. His friend Mr. Oh (66), standing nearby, added, “I’ve been working for 10 months, and even though social distancing was lifted, work hasn’t increased. When there’s no work, we often wait until 7 or 8 a.m.” According to Statistics Korea, the number of temporary and daily workers decreased by 52,000 and 77,000 respectively in July compared to the same month last year.

Some expressed dissatisfaction about older people not being hired. Mr. Wi (64) said, “Look around here, where are the young people? Those who stay past 7 a.m. are ultimately people our age.”

They said that due to rising prices, even if they earn money, it’s hard to go back to their hometowns. Mr. Yoon (68), who waited at the intersection until about 6:30 a.m., said, “Today, I didn’t get any work at all,” and added that even if he earns money, rising prices leave nothing left. Therefore, he plans to spend this holiday with acquaintances in his neighborhood. Mr. Yoon earned 198,000 KRW yesterday by working overtime but said he couldn’t work much due to aftereffects of shoulder surgery. When asked why he came out again in the morning, he said, “Because of my age, I have to work while I can, and I’m also looking for long-term jobs,” while fiddling with the reporter’s business card and asking if there were any jobs available.

At around 6:50 a.m. on the 8th, a worker who could not find a job is heading home near the Samgeori intersection of Namguro Station in Guro-gu, Seoul. Behind him stands a signboard of a manpower agency recruiting "laborers." Photo by Oh Gyumin moh011@

There were also workers who turned back after arriving late at the manpower office. Around 6:20 a.m., a worker ran up the stairs and asked a manpower office staff member, “Is the work finished?” The staff replied, “You have to come by 5 o’clock, uncle.” Mr. Kim, who has been running a manpower office for 10 years, said that construction sites are struggling due to rising raw material costs and minimum wage increases. He added, “The number of people looking for work has also slightly decreased.” On the other hand, a manpower office team leader said that many people who cannot work, such as those with expired IDs, are also waiting, and “Many people are just waiting looking for easy jobs, so it’s not that there are no jobs at all.”