"‘I Was Happy My Salary Increased, But Prices Rose Even More’... Real Wages Decreased by 53,000 Won"

2023 August Business Labor Force Survey
Prices Rise Faster Than Wages

From the beginning of this year until July, wages increased by 2.2%, while prices rose by 3.7%.

According to the results of the Ministry of Employment and Labor's 'August Business Survey on Workforce and April Regional Wage and Working Hours Survey' released on the 28th, the average monthly total wage per worker at businesses with one or more regular employees from January to July was 3,941,000 KRW, an increase of 2.2% (85,000 KRW) compared to the same period last year.

However, the average monthly real wage per worker, reflecting the price level from January to July, was 3,559,000 KRW, a decrease of 1.5% (53,000 KRW) compared to the same period last year (3,612,000 KRW). This is because the consumer price index rose by 3.7% from January to July.

As of the last business day of August, the number of employees at businesses with one or more employees was 19,886,000, an increase of 344,000 (1.8%) compared to the same month last year (19,542,000). Regular employees increased by 240,000 (1.5%), temporary and daily workers by 98,000 (5.1%), and other workers by 6,000 (0.5%) compared to the same month last year.

The number of new hires in August was 943,000, a decrease of 18,000 (-1.9%) compared to the same month last year. On the other hand, the number of separations was 943,000, an increase of 44,000 (4.8%). Among new hires, regular hiring was 889,000, an increase of 11,000 (1.3%) compared to the same month last year, while other new hires (transfers between headquarters and branches, reinstatements, etc.) were 53,000, a decrease of 29,000 (-35.4%). Among separations, voluntary separations (personal reasons, etc.) were 323,000, an increase of 27,000 (9.0%) compared to the same month last year; involuntary separations (contract expiration, etc.) were 556,000, an increase of 30,000 (5.7%); and other separations (transfers between headquarters and branches, leaves of absence, etc.) were 63,000, a decrease of 13,000 (-17.2%).

In July, the average working hours per worker at businesses with one or more regular employees was 158.9 hours, a decrease of 2.8 hours (-1.7%) compared to the same month last year. Temporary and daily workers experienced a larger reduction in working hours. The average working hours per regular employee was 166.6 hours, down 1.8 hours (-1.1%), and for temporary and daily workers, it was 90.4 hours, down 9.3 hours (-9.3%).