Job Entry Rate Drops to 13.9%, Down 1.1 Percentage Points
Job Changers Number 3,951,000... Down 4.1%
"First Case of Simultaneous Decrease in Entrants and Job Changers"
Job Changes with Lower Wages Rise to 38.4%, Up 4.4 Percentage Points
The number of workers who either found new jobs or changed jobs in 2023 decreased across the board. This is the first time such a trend has been observed since relevant statistics began to be compiled, as the job market has become more rigid. In particular, the number of new entrants was 3,646,000, the lowest on record. While the number of job changers who increased their wages declined, those who moved to lower-paying jobs increased.
Job seekers visiting the 2025 Mid-sized Company Job Fair held last April at COEX in Gangnam-gu, Seoul, are looking at the job posting board.
Rigid Job Market... Both Entrants and Job Changers Decrease
According to the "2023 Job Mobility Statistics" released by Statistics Korea on June 4, the total number of registered workers, including both wage and non-wage workers, was 26,145,000 in 2023, an increase of 88,000 (0.3%) from the previous year.
Among these, the number of new entrants?those who were unregistered in 2022 but registered in 2023?was 3,646,000, a decrease of 265,000 (6.8%). This is the lowest figure since such statistics began to be compiled in 2017. The number of entrants had already declined for the first time in the previous year (2022), dropping by 2.9% to 3,911,000. The entry rate fell by 1.1 percentage points to 13.9%.
The number of job changers between companies was 3,951,000, a decrease of 168,000 (4.1%). The mobility rate dropped by 0.7 percentage points to 15.1%. In contrast, the number of people who remained with the same company increased by 521,000 (2.9%) to 18,548,000. The retention rate rose by 1.8 percentage points to 70.9%.
An official from Statistics Korea explained, "This is the first time that both the number of entrants and job changers have decreased together," adding, "We believe this trend emerged in 2023 as the job market became more rigid."
By age group, the job retention rate was ▲78.0% for those in their 40s ▲77.4% for those in their 50s ▲72.5% for those in their 30s, in that order. The mobility rate was highest among ▲those aged 29 and under (21.1%) ▲those in their 30s (15.6%) ▲those aged 60 and above (14.1%). While the retention rate increased across all age groups, the mobility rate declined in every age group.
Increase in Workers Moving to Lower-Paying Jobs
A closer look at the job changer statistics shows that the proportion of those moving between companies of the same size was 72.4%, a decrease of 0.2 percentage points from the previous year. The mobility rate from large companies to other large companies was 37.3%, down 0.8 percentage points, while the rate from small and medium-sized enterprises (SMEs) to other SMEs was 81.3%, a decrease of 0.5 percentage points.
The proportion of workers moving from the secondary to the primary labor market remained in the 10% range. The rate of mobility from SMEs to large companies was 12.1%, unchanged from the previous year. The rate of mobility from large companies to SMEs was 56.5%, up 0.5 percentage points.
The number of workers moving to higher-paying jobs decreased. Among wage workers who changed jobs (2,236,000), 60.7% moved to jobs with higher pay. This figure is down 4.4 percentage points from the previous year. The proportion of those who moved to jobs with lower pay was 38.4%, an increase of 4.4 percentage points.
Regarding the increase in workers with reduced wages, an official from Statistics Korea stated, "(Due to low birth rates and an aging population,) the number of older generation workers is increasing while the number of younger generation workers is declining, which created an age-related effect." The official added, "As more retirees re-enter the workforce, the proportion of those with lower wages rises, which also contributes to this trend."
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