Kim, a 39-year-old with a full-time job, has taken to delivering food in his spare time this year. Riding an electric bicycle, he hustles through weekends to supplement his income. Despite earning around 10,000 won per hour, close to the minimum wage of 9,860 won, every penny counts for Kim, especially with the rising cost of living and the responsibility of supporting a child.
Across South Korea, individuals are increasingly seeking additional work to cope with high interest rates and inflation. This trend isn’t just limited to the young; individuals in their 40s and 50s are also feeling the pinch and joining the ranks of part-time workers.
Statistics Korea notes a significant rise in employed individuals engaging in additional work, indicating a shift in labor dynamics. In the first quarter of this year (January to March), the monthly average of employed people taking on extra work reached approximately 552,000, marking a 22.4% increase from the previous year’s first quarter (an average of about 451,000 per month). This surpasses 500,000 for the first time.
Although the proportion of those engaging in additional work remains relatively low, 1.97% based on last year’s figures, the growth rate is significant. In the first quarter of 2019, before the COVID-19 pandemic, the proportion was only 1.34%, showing an increase of 0.63 percentage points over the past four years.
While young people aged 15-29 are experiencing the highest growth rate in this trend (30.9%), individuals in their 40s and above are also actively participating. The growth rates of those in their 40s and those aged 60 and above were 27.7% and 25.1%, respectively. The growth rates of those in their 30s (14.9%) and 50s (14.7%) were also significant. Among employed people taking on additional work in the first quarter of this year, the age group with the largest proportion was those aged 60 and above (194,000), followed by those in their 50s (118,000) and 40s (115,000).
This is evident in the surge of applications from older demographics in the part-time job market. According to the job search site Alba Heaven, the increase in applications for part-time jobs from people in their 40s and above, who have a high proportion of regular employment, increased by 157.7% and 357.2%, respectively, compared to 2019. The increase for those in their 30s was also significant at 89.3%. This is more than three times higher than the increase for those in their 20s, who primarily lead the part-time job market (28.6%).
Over the past two years (2021-2023), the proportion of new resumes registered by people in their 20s for part-time jobs decreased from 57.7% to 51.8%, a decrease of 5.9 percentage points. However, during the same period, those in their 30s increased by 1.3 percentage points (from 11.9% to 13.2%), and those in their 40s and above increased by 2.2 percentage points (from 9% to 11.2%) and 3.3 percentage points (from 5.5% to 8.8%), respectively.
Analysis attributes the trend to persistent challenges like high interest rates and inflation, particularly affecting low-income households. Last April, Alba Heaven surveyed 530 members aged 40 and above, all with additional work experience, to explore motivations. Over half (53.8%) cited ‘increased expenses due to rising interest rates and inflation’ as their primary motivation. Additionally, 26.4% mentioned taking on extra work due to ‘decreased income from the main job and minimal wage increases.’
Kim Jung-sik, an economics professor at Yonsei University, said, “In addition to high interest rates and inflation, many households also face increased taxes due to asset inflation.”
The emergence of gig economy platforms such as Baedal Minjok and Coupang Eats has further facilitated easier access to additional work opportunities for individuals. The flexibility and earning potential offered by avenues like YouTubing have also fueled the desire for supplementary income among Koreans.
Despite the increasing prevalence of additional work, the financial rewards remain modest. According to a report from the Korea Labor Institute, workers with multiple jobs earn slightly more on average, but their hourly income is lower than those with only one job. Specifically, workers with multiple jobs had an average monthly income of 2.94 million won, which was 210,000 won higher than those with only one job. However, their hourly income was 13,000 won, which was 16,000 won lower than those with only their main job.
