Competition for Hanwha Ocean's entry-level production hires hit a record 82-to-1 in the first half of this year, according to data. As shipbuilders emerge from a prolonged downturn to post all-time-high profits and increase employee compensation, job seekers are flocking to the sector.
On the 3rd, industry sources said Hanwha Ocean drew more than 3,500 applicants to hire 43 entry-level production workers in the first half of this year. That is on par with the total number of applicants for the production openings in both the first and second halves of last year. Final hires were assigned on Aug. 10 to 16 teams, including outfitting, erection, assembly, processing, equipment operation, and special ship production support. Hanwha Ocean is also set to launch its second-half entry-level production recruitment starting today.
Applications for shipyard production jobs, which had thinned due to the long slump and restructuring, have surged recently. Hanwha Ocean's production recruitment applicants increased nearly fourfold from about 900 in 2024 to about 3,500 last year. This year, following a record-high competition rate in the first half, the annual applicant tally is also expected to set a new high.
The rush to production roles appears largely driven by the shipbuilding industry shaking off years of losses and securing years' worth of workload and strong profits. Korea's three major shipbuilders returned to annual profit in 2024 for the first time in 13 years. Riding a boom in orders, their combined operating profit last year was 5.8758 trillion won, up 170% from a year earlier, and they earned 4.7764 trillion won in the first half of this year. As of the end of June, backlogged orders swelled to about $145.4 billion, the highest in 12 years, stacking up more than three years of work.
Hanwha Ocean's operating profit jumped from 237.9 billion won in 2024 to 1.1091 trillion won last year, and reached 1.1772 trillion won in just the first half of this year. The improved results translated into compensation employees could feel. After a 150% performance bonus relative to base pay was paid last year for the first time in four years, it rose to 400% this year. It is the only Korean shipbuilder with a U.S. yard, Philly Shipyard, boosting expectations for business expansion as Korea-U.S. shipbuilding cooperation grows. With stronger results and better treatment, plus growth prospects in the U.S. business, job seekers' interest is rising.
As workloads increase, shipbuilders are rebuilding production headcount. Hanwha Ocean's workforce grew from about 8,600 at the end of 2023 to more than 11,000 in February this year. HD Hyundai Heavy Industries, HD Hyundai Mipo, and HD Hyundai Samho also scrapped experience and major restrictions last year to openly hire up to 160 production technicians. HD Hyundai Heavy Industries is continuing to hire production technicians this year from Meister high school graduates in Busan, Ulsan, and South Gyeongsang, as well as from partner firms' employees. In the second half, it plans to widen eligibility for conversion to prime-contractor full-time roles to include entry-level applicants with short partner-firm experience.
An industry official said, "As shipbuilding conditions rebound and major shipbuilders' results normalize, more applicants are seeking production jobs, and companies are seeing a virtuous cycle as they refill domestic headcount that left during the downturn."
However, unlike the large shipbuilders drawing crowds of applicants, partner companies still struggle to hire. Even within the same industry, the gap in treatment and job security between prime contractors and subcontractors is large. The government and shipbuilders are expanding wage and welfare support for partners and ramping up development of skilled domestic workers, but they still have not won over job seekers.
Another industry official said, "While labor shortages in shipbuilding persist, the gap in labor supply between prime contractors and partner firms is widening," adding, "Applicants are flocking to prime-contractor production jobs with better treatment and job security, but partner firms and skilled trades still face severe hiring challenges."