Workers earning 5 million won or more a month hit a record 3.71 million last year; 24% of manufacturing workers cleared that threshold, compared with just 5.4% in health and social welfare — deepening the wage divide across industries
The number of workers earning a monthly average wage of 5 million won (about $3,280) or more surpassed 3.7 million for the first time last year, driven largely by a semiconductor boom and expanded performance bonuses that pushed up high-wage employment in manufacturing.
Yet the health and social welfare sector — which has been the main engine of recent job growth — tells a starkly different story: three in four workers there earn less than 3 million won a month, widening the wage gap between industries.
According to the Ministry of Statistics' national statistics portal KOSIS, based on the regional employment survey for the second half of last year (October reference month), about 3.713 million of the roughly 22.488 million wage workers counted earned a three-month average monthly wage of 5 million won or more. That represents 16.5 percent of all wage workers.
The number of workers in that bracket rose by 296,000 from a year earlier, and their share of the total workforce climbed 1.1 percentage points — both the highest levels since the survey began in 2013. Analysts attribute the gains to wage increases driven by rising prices and improved corporate earnings.
One in four manufacturing workers now in high-wage bracket — a record
Manufacturing stood out among industries for its concentration of high earners. Of the roughly 3.946 million wage workers in the sector, about 948,000 — or 24.0 percent — earned 5 million won or more per month, up 2.3 percentage points from a year earlier and the highest share on record.
Looking at the broader wage distribution in manufacturing, the largest group — 28.0 percent — fell in the 3 million to under 4 million won range, while another 16.2 percent earned between 4 million and under 5 million won. Altogether, 68.2 percent of manufacturing workers earned 3 million won or more, meaning nearly seven in 10 fell in the middle-to-upper wage bands.
A recovery in the semiconductor industry and the expansion of performance bonuses drove wage growth in manufacturing. As Samsung Electronics, SK Hynix and other chipmakers posted improved earnings, the share of high-paying jobs in the sector rose alongside them.
Health and welfare sector adds jobs but wages remain low
The health and social welfare sector, which has led overall employment growth in recent months, presents a sharp contrast in terms of pay.
Only 5.4 percent of workers in the sector earned 5 million won or more per month. At the other end, 75.4 percent earned less than 3 million won.
Breaking that down further: 29.2 percent earned under 1 million won, 12.8 percent earned between 1 million and under 2 million won, and 33.4 percent fell in the 2 million to under 3 million won range. Those earning between 3 million and under 4 million won accounted for 14.3 percent, while the 4 million to under 5 million won bracket made up 4.9 percent.
The health and social welfare sector has served as a pillar of the labor market in recent months, buoyed by an aging population and rising demand for care services. In fact, even as total employment fell last month, the sector added 212,000 jobs. But wages have not kept pace with hiring, and expanding the supply of quality jobs in the sector remains an unresolved challenge.
Finance and IT top wage rankings; accommodation and food service at the bottom
Across industries, finance and insurance posted the highest share of workers earning 5 million won or more at 38.0 percent, followed by professional, scientific and technology services at 35.8 percent, information and communications at 34.8 percent, and manufacturing at 24.0 percent.
At the other extreme, only 1.4 percent of workers in accommodation and food service earned 5 million won or more — the lowest share of any industry.
Experts warn that if wage growth continues to concentrate in advanced manufacturing sectors such as semiconductors, the pay gap between industries could widen further. There are also concerns that within manufacturing itself, the wage divide between large companies and small and medium-sized enterprises, and between prime contractors and their suppliers, could grow.
While the expansion of high-wage jobs is a positive development, analysts say wage polarization between industries will deepen unless the low-pay structure in the health and care sector — which is currently propping up overall employment — is addressed.
fact0514@heraldcorp.com
