Due to High Inflation... Real Wages in January Backslide to 3,791,000 Won

Ministry of Employment and Labor, Business Workforce Survey

Real wages in January, adjusted for inflation, were 3,791,000 won, showing a decrease of more than 11% compared to the previous year.

According to the Business Labor Force Survey results announced by the Ministry of Employment and Labor on the 28th, the average monthly real wage per worker in businesses with one or more regular employees, reflecting the price level in January this year, was 3,791,000 won, down 11.1% (474,000 won) from 4,265,000 won in the same month last year.

The Ministry of Employment and Labor explained that the decrease in real wages was due to the Lunar New Year holiday, which fell in January last year but in February this year, resulting in a reduction in special payments such as Lunar New Year bonuses and thus a decrease in nominal wages.

In fact, the average nominal wage in January was 4,289,000 won, down 8.6% compared to the same month last year. The reason the decrease in real wages was greater than that of nominal wages was due to the impact of rising prices. During the same period, the consumer price inflation rate was 2.8%.

Nominal wages refer to the actual amount paid by employers to workers as compensation for labor, while real wages reflect the impact of price changes on the nominal wages received by workers.

[Image source=Yonhap News]

The average monthly working hours per person were 165.0 hours, an increase of 11.2 hours (7.3%) compared to the same month last year. The Ministry of Employment and Labor explained, "The reason for the increase in working hours is that the number of working days in January increased by two days compared to the previous year according to the calendar."

By employment status, the average working hours per regular employee were 173.2 hours, an increase of 12.7 hours (7.9%), while temporary and daily workers worked 90.0 hours, a decrease of 1.1 hours (-1.2%).

By business size, the average working hours per employee in businesses with fewer than 300 regular employees increased by 10.9 hours (7.1%) to 163.9 hours, and in businesses with 300 or more regular employees, it increased by 12.6 hours (8.0%) to 170.1 hours.

The industry with the longest working hours was manufacturing at 181.3 hours, followed by water supply, sewage, waste management, and raw material recycling industries at 179.1 hours. The industries with the shortest working hours were construction at 135.6 hours and education services at 140.4 hours.