Jobs Disappear Amid Manufacturing and Construction Downturns
Platform Work Becomes a Lifeline for Many
"Measures Needed to Prevent Decline in Job Quality"
Mr. Lee (34), who lives in Gimpo, Gyeonggi Province, found a new job after a year and a half. His position is a heavy equipment operator at a small logistics center run by a mid-sized company. He said that his living expenses for the next month were already tight, but he expressed relief, saying, "For now, I'm just grateful to have a stable income."
Lee is versatile. He spent three years learning at a sashimi restaurant and became a skilled chef, and after learning carpentry, he worked at construction sites. He was confident that no matter what hardship came his way, he would be able to make a living. However, when the construction industry suddenly slumped, all his work dried up. Lee said, "I barely managed to get by delivering food at night, but even that became too competitive," and added, "Fortunately, there was a logistics center near where I live."
Mr. Kim (27), an equipment installation engineer who frequently travels to industrial complexes in regional areas such as Yeosu, has also noticed significant changes in recent years. Kim said, "As petrochemical plants withdraw or shut down operations, companies that used to receive secondary subcontracting work are struggling. In the past, freelancers could pick and choose jobs and travel for work, but now it's common to wait over a month for new assignments. I've seen many friends who ran out of living expenses turn to delivery jobs or logistics centers."
As the manufacturing and construction sectors experience downturns and jobs at factories and construction sites disappear, new sources of employment are emerging in fields such as care work, parcel delivery, and logistics centers, which generally offer lower wages and less job stability.
Parcels piled up at a logistics center. Photo is not related to any specific expression in the article. Photo by Yonhap News
According to employment administration statistics released by the Ministry of Employment and Labor, as of last month, the number of manufacturing industry employment insurance subscribers decreased by 5,000 compared to the same month last year, marking a decline for the second consecutive month. The number of construction industry subscribers has also been falling for 24 consecutive months. In contrast, the number of service industry subscribers increased by 203,000 year-on-year, with 134,000 of these in the health and welfare and transportation and warehousing sectors. The number of platform workers, including delivery app riders, e-commerce logistics center workers, and care workers-classified as special employment types-has also surged from an estimated 470,000 in 2018 to 880,000 in 2023.
The issue is that jobs in care work, parcel delivery, and logistics centers are significantly lower in quality compared to those in manufacturing and construction. The average wage for domestic manufacturing workers is 4.69 million won (2023, Statistics Korea), which is higher than the overall average wage for workers (3.12 million won). In contrast, jobs in care work, parcel delivery, and logistics centers often offer little job security or low wages. Regarding this, Lee said, "Most logistics center hourly wages are just slightly above the minimum wage. Of course, my monthly salary has dropped a lot compared to my previous jobs, but since I can't find other work right now, I have no choice."
Kim Sunghee, a professor at Korea University's Graduate School of Labor Studies, said, "The proportion of the service sector in the Korean economy is increasing," and predicted, "As a result, the contribution of the health, welfare, and logistics sectors to job creation will grow even further." He added, "While changes in the labor landscape due to shifts in the economic structure are inevitable, it is now necessary to establish systems to prevent the overall decline in job quality."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
