Last month, the number of people employed by domestic enterprises decreased, continuing a downward trend for six months this year. Workers in not only the construction and manufacturing sectors but also in the retail and accommodation and food service sectors are continuing to decline.
According to the 'June enterprise labor force survey' announced by the Ministry of Employment and Labor on the 30th, as of the end of last month, the number of employees in enterprises with one or more employees was 20,272,000, a decrease of 15,000 compared to the same month last year.
The number of employees in enterprises has been steadily decreasing since 2022, switching to a downward trend since the beginning of this year. ▲January (-55,000) ▲February (-8,000) ▲March (-26,000) ▲April (-2,000) showed, and May showed a flat level. It has been a downward trend for six months.
While the impact of demographic changes is evident, the economic downturn in certain industries is also affecting the situation. First, the number of employees in the construction industry decreased by 91,000 (6.2%) compared to the same month last year. This marks the 13th consecutive month of decline. The manufacturing sector, which accounts for 18% of all industry employees and has the largest share, also saw a decrease of 9,000, marking a continuous decline for 21 months since October 2023.
In the retail and accommodation and food service sectors, a decrease of 20,600 (1.1%) and 21,000 (1.7%) respectively was recorded. Kim Jae-hoon, Director of Labor Market Research at the Ministry of Employment and Labor, noted, "As the issuance of consumption coupons for the recovery of people's livelihoods has begun, there is hope for improvement in the situation of retail and accommodation and food service this month."
On the other hand, areas that saw an increase in employees were ▲health and social welfare services (+83,000, 3.4%) ▲professional and scientific technical services (+18,000, 1.4%).
Regions that experienced a decrease in the number of employees compared to a year ago include Seoul, Gwangju Metropolitan City, Busan, North Gyeongsang Province, and South Jeolla Province. In addition, the remaining 12 regions, including South Chungcheong, Ulsan, South Gyeongsang, and Gyeonggi Province, increased.
As of May, the nominal wage per employee at enterprises with one or more regular workers was 3,916,000 won, an increase of 94,000 won (2.5%) compared to the same month last year. Considering the level of prices, the real wage was 3,368,000 won, with a growth rate of 0.5%.
Director Kim explained, "The trend of decreasing employee numbers is expected to reverse if the construction industry's economy improves."