Number of Workers Earning Over 5 Million Won Hits Record High, Yet Wage Gap Widens Across Industries

The number and proportion of wage workers earning a monthly average of more than 5 million won have reached their highest levels since related statistics began to be compiled.

Driven by inflation and rising wages, the share of workers earning 5 million won or more continues to grow.

However, a significant gap exists between industries; while one in four workers in the manufacturing sector earns this amount, the figure stands at only 5 percent in the health and social welfare sector.

According to the Korean Statistical Information Service (KOSIS) and the Regional Employment Survey on Monday (June 22), there were 3.713 million wage workers with a monthly average income (including bonuses, before taxes) of 5 million won or more during the second half of last year (October), out of a total of 22.488 million wage workers.

This group accounted for 16.5 percent of all wage workers.

Both the number and the proportion of wage workers earning 5 million won or more reached their highest levels since the statistics were first compiled in 2013.

Compared to a year earlier, the number of such workers increased by 296,000, and the proportion rose by 1.1 percentage points (p).

The disparity in high-paying jobs was significant across industries.

In the manufacturing sector, which has the largest number of wage workers (3.946 million), 948,000 workers, or 24.0 percent, earned 5 million won or more.

This proportion increased by 2.3 percentage points from a year ago, marking an all-time high.

Meanwhile, 28.0 percent earned between 3 million and 4 million won, and 16.2 percent earned between 4 million and 5 million won.

This means that 68.2 percent of all workers in the manufacturing sector earn 3 million won or more.

In contrast, the proportion of workers earning 5 million won or more in the health and social welfare sector was only 5.4 percent.

In this industry, more than 75 percent of wage workers earned less than 3 million won.

Although the health and social welfare sector is considered one of the two main pillars of total employment alongside manufacturing, the wage distribution is vastly different.

Specifically, 29.2 percent earned less than 1 million won, 12.8 percent earned between 1 million and 2 million won, and 33.4 percent earned between 2 million and 3 million won.

Those earning between 3 million and 4 million won accounted for 14.3 percent, while 4.9 percent earned between 4 million and 5 million won.

The health and social welfare sector is a key industry currently supporting the labor market.

Even as the total number of employed people decreased year-on-year last month for the first time in 17 months, the health and social welfare sector maintained a steady growth trend with an increase of 212,000 workers.

Analysts suggest that while health and welfare jobs are growing rapidly due to an aging population and increased demand for care services, employment conditions, including wages, remain poor.

In the second half of last year, the proportion of workers earning 5 million won or more was particularly high in finance and insurance (38.0 percent), professional, scientific, and technical services (35.8 percent), and information and communications (34.8 percent).

The accommodation and food service sector had the lowest proportion among all industries, with only 1.4 percent of workers earning 5 million won or more.

This wage gap between industries is expected to widen further.

This is due to the ongoing improvement in business conditions and increased performance bonuses, particularly in the semiconductor manufacturing sector.

There is a possibility that wage disparities will widen not only between industries but also within the manufacturing sector itself.

Concerns have also been raised that such wage increases could fuel inflationary pressure.
※ Please note: This article was translated by AI and may contain errors.