Real wages for workers fell for the third straight month due to rising prices. It is the first time in three years since 2023 that real wages have fallen for three consecutive months.
The number of enterprise employees last month increased by 226,000 from a year earlier, but about 65% of the increase was in temporary and day labor.
The Ministry of Employment and Labor (MOEL) on the 27th released the results of the "July 2026 enterprise labor survey and April 2026 regional enterprise labor survey."
According to the ministry, the total wage per worker at enterprises with at least one regular employee in June was 4,094,000 won. That was up 123,000 won (3.1%) from the same month a year earlier.
Regular employees' wages were 4,375,000 won, up 3.6%, and temporary and day laborers' wages were 1,773,000 won, up 3.8%. For regular employees, special bonuses rose 17.2% due to retroactive pay from wage hikes in semiconductor-related industries and expanded performance bonuses.
However, real wages reflecting inflation were 3,412,000 won, down 2,000 won (0.1%) from a year earlier. Real wages fell for the third straight month after declining 1.0% in April and 1.4% in May this year. It is the first time since the five straight months of declines from April to August 2023 that real wages have fallen for three months or more in a row.
Jeong Hyang-suk, head of the labor market survey division at the ministry, said, "Since 2022, inflation is now at its highest level," adding, "Real wages are turning negative because inflation is higher than the modest wage growth rate."
On a second-quarter basis, average monthly nominal wages per worker were 4,036,000 won, up 2.1% from a year earlier, while real wages were 3,370,000 won, down 0.8%. However, real wages for the first half overall were 3,606,000 won, up 0.3% from the first half of last year.
In the employment institutional sector, as of the end of July, the number of enterprise employees was 20,718,000, up 226,000 (1.1%) from the same month a year earlier.
By employment status, regular employees numbered 17,280,000, an increase of 78,000 (0.5%). Temporary and day laborers increased by 147,000 to 2,071,000 (7.6%), and other workers increased by 1,000 (0.1%). Of the total increase of 226,000 employees, temporary and day laborers accounted for about 65%.
Director Jeong said, "When employment recovers, temporary and day labor usually rise first, and if the labor market or the economy improves, it then leads to an increase in regular positions," adding, "It can be seen as a normal pattern."
By industry, employees in health and social welfare services increased by 119,000, the largest gain. Finance and insurance rose by 27,000, and professional, scientific and technical services increased by 25,000.
Manufacturing increased by 14,000, marking a seventh straight month of gains. The increase in manufacturing widened from 3,000 in April to 7,000 in May, 12,000 in June, and 14,000 in July. Electronics components, computers, video, audio and communications equipment manufacturing, which includes semiconductors, also increased by 5,000.
Construction also rose by 3,000, posting a second straight month of increase. However, compared with the 72,000 drop in construction employees in July last year and a 23-month decline, the recent gains have been limited to the 3,000–7,000 range.
Wholesale and retail employees also fell by 28,000, declining for the 28th straight month. The ministry sees the closures and shutdowns of big-box stores as having recently contributed to the decrease in wholesale and retail employees.
Job entries and separations surged last month. In July, 1,143,000 people entered jobs, up 177,000 (18.3%) from a year earlier, and 1,127,000 people separated from jobs, up 178,000 (18.8%). Among them, involuntary separations totaled 669,000, up 131,000 (24.3%) from a year earlier.
Director Jeong said, "Involuntary separations are usually about 90% temporary and day labor, with contract expirations being a strong factor and little impact from restructuring."