Over half of SME workers have no plans for children, survey finds

More than half of workers at small and medium-sized enterprises have no intention of having children, a new survey shows. More than eight in 10 said balancing marriage, childbirth and child-rearing is harder for SME workers than for those at large companies or public institutions, with the difficulty of using parental leave and family policies at work cited as the biggest obstacle.

The Korea Federation of SMEs held a policy forum Monday morning at its headquarters in Yeouido, Seoul, in partnership with the Presidential Committee on Ageing Society and Population Policy, releasing the results of a survey on childbirth and child-rearing awareness among 600 SME workers and small business owners.

According to the survey, 57.1 percent of SME workers said they were either undecided about marriage or had no intention of marrying. Financial burden was the single biggest barrier to marriage and childbirth. Among unmarried SME workers, 57.0 percent cited the cost of weddings and housing as the top concern when considering marriage, followed by the burden of post-marriage roles at 52.7 percent and income and job insecurity at 35.0 percent.

On future plans for children, 51.0 percent of SME workers — more than half — said they had none. Those who said they did have plans was limited to 23.3 percent, while 25.7 percent said they were still undecided.

Financial concerns also topped the list of burdens during the childbirth and child-rearing process. Some 64.3 percent of SME workers cited the cost of housing, child-rearing and education, followed by the difficulty of balancing childcare with work at 54.3 percent and gaps in childcare coverage and insufficient infrastructure at 42.7 percent.

The picture was little different for owners of small businesses. Some 50.7 percent said they had no plans for children. The top burden was also financial cost at 58.7 percent, followed by the difficulty of balancing child-rearing with running a business at 45.0 percent and a lack of childcare infrastructure at 38.7 percent.

When asked whether balancing marriage, childbirth and child-rearing was harder for SME workers than for those at large companies or public institutions, 44.3 percent said "strongly agree" and 40.7 percent said "agree."

The most commonly cited reason was a workplace culture that makes it difficult to use childbirth and child-rearing policies, at 63.5 percent, followed by differences in welfare levels at 49.0 percent, increased burden on colleagues and employers at 46.7 percent, and differences in wage levels at 32.9 percent.

In practice, only 24.7 percent of respondents said it was easy to use work-life balance policies such as parental leave at their current workplace, while 43.7 percent said it was difficult. Among those who found it difficult, 84.0 percent said the biggest reason was the added burden placed on colleagues and managers due to a shortage of replacement workers, followed by workplace atmosphere at 56.5 percent and concerns about reduced income at 43.5 percent. The findings underscore how difficult it is for SMEs to make use of childbirth and child-rearing policies given chronic labor shortages.

At the forum, the SME community put forward several proposals: easing government project eligibility requirements for companies led by female CEOs who are pregnant or raising children, expanding support for SME owners hiring replacement workers, broadening support for young people to join and remain at SMEs long-term, and developing flexible work arrangements and childcare support tailored to SME workplaces.

"Easing the burden of childbirth and child-rearing requires not only expanded financial support but also childcare services that fit the actual working and business environment," said Park Eun-jeong, a research fellow at the federation. "It is particularly important to account for shift work in manufacturing and the evening and weekend operations typical of small business owners," she said.

Kim Ki-moon, chairman of the Korea Federation of SMEs, said Monday that a significant number of SME workers cited financial burden and the difficulty of balancing work and child-rearing as reasons for hesitating over marriage and childbirth. He called on the Population Strategy Committee, set to launch in September, to serve as a control tower that develops effective, field-driven policies.

Kim Jin-o, vice chairman of the Presidential Committee on Ageing Society and Population Policy, said that while childbirth and child-rearing support systems exist, many SME workplaces are either unaware of them or unable to make full use of them due to business conditions. "There is a need to raise the rate of parental leave and flexible work use at SMEs, and it is important to improve awareness across society as a whole — not just among business owners — and to foster a family-friendly corporate culture," he said.