Wages and Working Hours

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Wages and Working Hours

Wage Growth

The average monthly gross wage for a worker in workplaces with 5 or more permanent employees was 3,198,000 KRW in August 2015, an increase of 1.2% from a year earlier.

In August 2015, when compared with a year ago, permanent workers saw a large slowdown in their wage growth. The average monthly gross wage for permanent workers (3,369,000 KRW) rose by just 1.0% in August 2015, from a year earlier, due largely to the slowdown in the growth of overtime pay (6.8%) and the decrease in special (bonus) pay (−13.3%).

The growth in regular pay for permanent workers shows a downward trend over the long term. The regular pay for permanent workers grew by 3.2% in August 2015, an increase of 0.1 percentage points from a year earlier.

In August 2015, there was a large slowdown in the growth of real wages. Real wages rose by 0.5% in August 2015, compared with a year ago. Due to the small increase in the growth of the consumer price index (2010 = 100.0) in August 2015, showing a growth of 0.7%, and the slowdown in the increase in nominal wages, real wages increased by 3.5% in August 2015.

(In percentages, 2010 = 100.0)

Figure 5. Trends in wage growth.

Source: Labor Force Survey at Establishments, by Korea Ministry of Employment and Labor.

Growth in the consumer price index (right) Growth in real

wages (left) Growth in nominal

wages (left)

Growth in regular pay (left)

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Table 5. Key Indicators of Wages, at Establishments with 5 or More Employees

(In thousand won (KRW), %, 2010 = 100.0)

2012 2013 2014 2015

Average (Jan.– Aug.)

Aug. Aug.

Monthly gross wages for all workers

2,995 3,111 3,190 3,149 3,159 3,245 3,198

( 5.3) ( 3.9) ( 2.5) ( 2.6) ( 5.0) (3.1) ( 1.2)

Permanent workers

Monthly gross wages

3,178 3,299 3,378 3,334 3,337 3,426 3,369

( 5.3) ( 3.8) ( 2.4) ( 2.7) ( 5.0) ( 2.8) ( 1.0)

Regular pay 2,470 2,578 2,660 2,647 2,646 2,729 2,729

( 5.5) ( 4.4) ( 3.2) ( 3.2) ( 3.1) ( 3.1) ( 3.2)

Overtime pay 181 184 201 199 202 216 216

( 1.0) ( 1.7) ( 9.3) ( 9.2) (11.8) ( 8.5) ( 6.8)

Special (bonus) pay 527 537 516 488 489 482 424

( 5.8) ( 1.8) (-3.7) (-2.3) (13.2) (-1.3) (-13.3)

Monthly gross wages for temporary and daily workers

1,293 1,377 1,387 1,389 1,370 1,416 1,431

( 6.4) ( 6.5) ( 0.7) ( 0.7) (-3.2) ( 1.9) ( 4.4)

Consumer price index 106.3 107.8 109.0 109.5 109.5 110.2 110.2

( 2.2) ( 1.2) ( 1.3) ( 1.4) ( 1.4) ( 0.6) ( 0.7)

Monthly gross wages for

temporary and daily workers 3.1 2.5 1.3 1.2 3.5 2.5 0.5

Note: The figures are nominal wages for wage earners. The numbers in parentheses are rates of growth when compared with the same period of the previous year.

Source: Report on Labor Force Survey at Establishments, by Korea Ministry of Employment and Labor; The Bank of Korea (http://ecos.bok.or.kr).

Wage Growth by Industry

In August 2015, when compared with a year ago, the largest growth in average monthly gross wage was witnessed in mining and quarrying (3,472,000 KRW, 8.1%) and in real estate, renting, and leasing (2,436,000 KRW, 8.1%), followed by finance and insurance (5,333,000 KRW, 7.7%), and professional, scientific, and technical activities (4,700,000 KRW, 4.5%).

The average monthly gross wage rose by 1.2% for all industries on average, and some industries witnessed decreases in wage growth in August 2015. The smallest increase in the average monthly gross wages was witnessed in wholesale and retail trade (3,143,000 KRW,

−1.1%) and in human health and social work (2,650,000 KRW, −1.1%).

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Table 6. Wage Trends by Industry, at Establishments with 5 or More Employees

(In thousand won (KRW) per month, %)

2013 2014 2015

Aug. Aug.

All industries 3,111( 3.9) 3,190( 2.5) 3,149( 2.6) 3,159 ( 5.0) 3,245( 3.1) 3,198 ( 1.2) Mining and quarrying 3,557( 2.5) 3,480(-2.1) 3,478(-2.8) 3,212 (-3.0) 3,644( 4.8) 3,472 ( 8.1) Manufacturing 3,371( 4.7) 3,506( 4.0) 3,458( 4.4) 3,447 ( 5.3) 3,540( 2.4) 3,428 (-0.6) Electricity, gas, steam, and

water supply 5,542( 2.9) 5,554( 0.2) 5,306( 2.5) 4,598 ( 4.6) 5,474( 3.2) 4,612 ( 0.3) Sewerage, waste management,

materials recovery, and remediation 2,743( 3.3) 2,812( 2.5) 2,766( 3.1) 2,836 ( 3.8) 2,870( 3.7) 2,861 ( 0.9) Construction 2,414( 6.2) 2,497( 3.4) 2,471( 2.7) 2,428 ( 3.9) 2,575( 4.2) 2,503 ( 3.1) Wholesale and retail trade 3,168( 1.5) 3,206( 1.2) 3,154( 1.7) 3,178 ( 4.8) 3,208( 1.7) 3,143 (-1.1) Transportation 2,732( 5.5) 2,805( 2.7) 2,738( 2.1) 2,892 ( 7.5) 2,892( 5.6) 2,975 ( 2.9) Accommodations and food

services 1,772( 1.9) 1,785( 0.7) 1,742( 0.4) 1,796 (-0.5) 1,791( 2.8) 1,786 (-0.5)

Information and

communications 3,936( 2.2) 3,905(-0.8) 3,871(-1.7) 3,838 ( 3.3) 3,960( 2.3) 3,851 ( 0.3) Finance and insurance 5,058( 1.4) 5,234( 3.5) 5,151( 2.0) 4,952 ( 8.3) 5,457( 5.9) 5,333 ( 7.7) Real estate, renting, and leasing 2,269( 3.4) 2,323( 2.3) 2,294( 2.4) 2,254 ( 7.0) 2,461( 7.3) 2,436 ( 8.1) Professional, scientific, and

technical activities 4,243( 3.2) 4,419( 4.2) 4,326( 5.6) 4,498 ( 8.2) 4,413( 2.0) 4,700 ( 4.5) Business services 1,883( 5.2) 1,924( 2.2) 1,898( 1.9) 1,906 ( 0.9) 1,974( 4.0) 1,934 ( 1.5)

Education 3,261( 4.4) 3,375( 3.5) 3,428( 2.4) 3,565 ( 6.7) 3,547( 3.5) 3,567 ( 0.1)

Human health and social work 2,662( 2.0) 2,700( 1.4) 2,644( 0.1) 2,678 ( 2.1) 2,735( 3.4) 2,650 (-1.1) Arts, sports, and recreation

related services 2,326( 5.2) 2,398( 3.1) 2,374( 3.6) 2,303 ( 5.4) 2,439( 2.7) 2,381 ( 3.4) Membership organizations and other

personal services 2,226(-0.1) 2,249( 1.0) 2,213( 0.2) 2,264 ( 2.5) 2,277( 2.9) 2,345 ( 3.6) Note: The figures are nominal wages for wage earners. The numbers in parentheses are rates of growth when compared with the same month or period of the previous year. Industries are classified according to the Korean Standard Industrial Classification (Rev. 9).

Source: Report on Labor Force Survey at Establishments, by Korea Ministry of Employment and Labor.

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Hours of Work

The average number of monthly work hours for all workers stood at 166.3 in August 2015, an increase of 1.7% from a year earlier.

The average numbers of monthly work hours and actual regular hours for permanent workers stood at 170.9 and 158.2, respectively, in August 2015, increases of 1.8% and 2.0% from a year ago. However, overtime hours for these workers fell to 12.7 in August 2015, a decrease of 0.8% from a year ago.

The average number of monthly work hours for non-permanent workers stood at 119.0 in August 2015, a decrease of 0.4% from a year ago.

Table 7. Trends in Average Monthly Work Hours, at Establishments with 5 or More Employees

2013 2014 2015

Aug. Aug.

Monthly work hours for all workers 172.6 (-1.0) 171.4 (-0.7) 171.3 (-1.4) 163.6(-3.7) 172.0( 0.4) 166.3( 1.7) Monthly work hours for permanent

workers 178.1 (-1.0) 177.1 (-0.6) 176.8 (-1.3) 167.9(-4.0) 177.7( 0.5) 170.9( 1.8) Actual regular hours for permanent

workers 165.6 (-1.0) 164.1 (-0.9) 163.9 (-1.7) 155.1(-4.6) 164.7( 0.5) 158.2( 2.0) Overtime hours for permanent

workers 12.5 (-2.3) 12.9 ( 3.2) 13.0 ( 5.7) 12.8( 4.1) 12.9(-0.8) 12.7(-0.8)

Monthly work hours for

non-permanent workers 122.5 ( 0.2) 117 (-4.5) 118.2 (-4.8) 119.5(-3.1) 114.9(-2.8) 119.0(-0.4) Note: The figures are working hours for wage earners. The average from January to July is the accumulated average. The numbers in parentheses are rates of growth when compared with the same month or period of the previous year.

Work Hours by Industry

In August 2015, when compared with a year ago, most industries witnessed increases in work hours. Only electricity, gas, steam, and water supply (164.1 hours, −1.3%) and accommodations and food services (170.2 hours, −1.2%) saw decreases in work hours.

Except for the two industries, other industries witnessed increases in work hours in August

2015, when compared with a year ago. In particular, large increases in work hours were

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witnessed in business services (170.0 hours, −1.0%) and arts, sports, and recreation related services (158.3 hours, 2.2%,), when compared with a year ago.

The longest work hours were witnessed real estate, renting, and leasing (186.3 hours) in August 2015, followed by manufacturing (175.9 hours).

Table 8. Trends in Average Monthly Work Hours by Industry, at Establishments with 5 or More Employees

(In hours, %)

2013 2014 2015

Aug. Aug.

All industries 172.6 (-1.0) 171.4(-0.7) 171.3(-1.4) 163.6(-3.7) 172.0( 0.4) 166.3( 1.7) Mining and quarrying 180.6 (-2.5) 179.4(-0.7) 179.1(-1.3) 173.4(-1.6) 178.7(-0.2) 171.7(-1.0) Manufacturing 185.0 (-0.8) 185.4( 0.2) 185.5(-0.1) 172.3(-4.0) 185.6( 0.1) 175.9( 2.1) Electricity, gas, steam, and water

supply 173.4 (-1.2) 170.5(-1.7) 170.5(-2.8) 166.2(-4.5) 170.5( 0.0) 164.1(-1.3)

Sewerage, waste management, materials recovery, and remediation

182.0 (-1.5) 177.8(-2.3) 178.0(-3.1) 173.6(-4.5) 177.2(-0.4) 174.2( 0.3)

Construction 152.7 ( 0.1) 148.5(-2.8) 148.7(-3.7) 143.1(-2.3) 147.2(-1.0) 146.1( 2.1) Wholesale and retail trade 173.4 (-0.6) 172.3(-0.6) 172.1(-1.4) 165.1(-3.5) 172.5( 0.2) 165.1( 0.0) Transportation 177.8 (-2.1) 173.1(-2.6) 172.8(-3.4) 168.5(-5.1) 173.3( 0.3) 171.1( 1.5) Accommodations and food services 177.3 (-5.0) 175.2(-1.2) 173.5(-1.8) 172.3(-5.5) 174.3( 0.5) 170.2(-1.2) Information and communications 163.0 (-0.5) 161.9(-0.7) 162.4(-1.2) 154.7(-4.9) 163.7( 0.8) 158.0( 2.1) Finance and insurance 162.7 (-0.4) 163.4( 0.4) 163.6(-0.2) 155.6(-2.3) 163.8( 0.1) 156.3( 0.4) Real estate, renting, and leasing 191.5 (-1.0) 190.1(-0.7) 189.4(-1.9) 182.6(-3.1) 191.8( 1.3) 186.3( 2.0) Professional, scientific, and

technical activities 163.9 (-0.8) 163.3(-0.4) 162.9(-1.2) 154.9(-2.8) 164.1( 0.7) 157.5( 1.7) Business services 172.3 (-0.5) 171.9(-0.2) 171.6(-1.0) 166.1(-3.3) 172.2( 0.3) 170.0( 2.3) Education 150.6 (-0.3) 152( 0.9) 153.1( 0.5) 148.3(-4.7) 152.3(-0.5) 150.7( 1.6) Human health and social work 172.0 (-1.6) 169.6(-1.4) 169.2(-2.6) 164.0(-4.5) 170.9( 1.0) 167.3( 2.0) Arts, sports, and recreation

related services 158.0 (-0.1) 158.9( 0.6) 159.1( 0.4) 154.9(-2.0) 160.0( 0.6) 158.3( 2.2) Membership organizations and

other personal services 167.5 (-0.8) 162.9(-2.7) 163.5(-3.6) 158.3(-7.4) 162.8(-0.4) 160.1( 1.1) Note: The figures are working hours for wage earners. The average from January to July is the accumulated average. The numbers in parentheses are rates of growth when compared with the same month or period of the previous year. . And industries are classified according to the Korean Standard Industrial Classification (Rev. 9).