Korean Job Discussion Forums

[matthews_world]

It's already difficult for Koreans to find steady jobs here in this economy but does this article really tell the whole truth?

With the dwindling birth rate, in order to keep par with domestic demand, Korea will need to open up its doors and relax its labor laws for it to gain ground or even keep pace.

If my post makes sense, this could be advantageous for us foreigners.


Labor Shortage to Top 4.8 Million in 2020

By Lee Hyo-sik
Staff Reporter

South Korea is projected to face a shortage of up to 4.8 million workers in 2020 _ unless the country improves labor productivity _ due to a rapidly aging population and falling birthrates.

The Bank of Korea (BOK) reported yesterday that the government should emphasize increasing labor productivity as well as producing a sufficient number of workers to maintain sustainable growth in the future.

The Ministry of Finance and Economy also said the government should abolish a range of regulations hampering market competition across business sectors to enhance workers� efficiency.

The BOK forecast that the economy will need approximately six million more workers by 2020, but due to population aging and low birth rates, the economically active population aged 15-64 will increase by only 1.2 million, resulting in a shortage of 4.8 million.

The country�s population is estimated to reach 49.96 million in 2020, but will fall to 42.35 million in 2050 and 31.23 million in 2070. The nation's fertility rate fell to an all-time low of 1.08 babies per woman of childbearing age in 2005.

The lackluster growth in labor productivity in the service-sector, which employs the majority of the nation�s workforce, is expected to further worsen the shortage problem, it said.

Service-sector workers will account for 63.4 percent of the total workforce in 2020, up from 56.1 percent in 2005, while manufacturing workers will drop to 24.3 percent from 35.9 percent over the same period.

According to the central bank, the service sector�s labor efficiency will grow by an average 2.2 percent per year over the next 15 years, lower than the manufacturing-sector growth of 4.7 percent.

``Unless labor productivity improves, particularly in the services sector, the economy will suffer from labor shortages in the near future amid the rapidly aging population and falling birth rates,�� the BOK said.

The bank said the government should improve service sector efficiency, and create an environment in which more women and senior citizens can participate in economic activities.

The ministry also said that the country should make the labor market more flexible and invest more in research and development.

An individual Korean worker�s hourly productivity in the 2000-2004 period was calculated at $10.40, about 39 percent of the $27, which is the OECD average. Korea�s productivity trails that of the United States, Japan, Britain, France and Germany.

The U.S. has the highest average hour-to-dollar figure at $40, closely followed by Japan with $39.9. France�s figure was $35.60, Germany had $34 and Britain $32.10.

http://times.hankooki.com/lpage/200610/kt2006100816420510440.htm

[soviet_man]

[ajgeddes]

The average wage isn't $10 an hour. Read it again. That is what their productivity is measured to.

[rabbitsaregood]

What counts as a working hour? For example, do Samsung men just count their standard 40 hour week or their 80 hour actual one. Often overtime is unpaid or low paid. Do they count time spent face down in English class or in drunken singing in noraebang "business meetings" as working hours? If so it's easy to see why productivity might not be tip top.

[matthews_world]

Look at the future disparity with the Korean birthrates. This is going to mean much more of a need for foreigners to fill the gap. Could be quite lucrative for those who want to continue living here.

[Satori]

A labour shortage is much better than a work shortage...

[John Henry]

Yeah, those Thai laborers have it made!

[own_king]