If the minimum wage is raised from 9,620 won to 10,000 won next year, it is predicted that up to 69,000 jobs will be lost.
On the 26th, the Federation of Korean Industries announced that it had analyzed the effect of next year’s minimum wage increase through a report titled ‘The Impact of Minimum Wage Rise on Jobs’ commissioned by Chonbuk National University professor Choi Nam-seok먹튀검증.
According to the Federation of Korean Industries, if the minimum wage rises from 9,620 won to 10,000 won next year, at least 28,000 to 69,000 jobs will be lost. This is equivalent to 8.9% to 22.0% of the annual average of 314,000 new jobs over the past five years.
If the minimum wage is raised to 12,210 won (26.9 percent) as demanded by the labor community, the reduction in jobs is estimated at a minimum of 194,000 and a maximum of 470,000.
The Federation of Korean Industries (FKI) also analyzed the impact of the minimum wage hike on jobs for the underprivileged, such as the youth, low-income class, and small businesses.
For young people aged 15 to 29, an increase in the minimum wage to 10,000 won reduces the number of jobs by 15,000 to 18,000. In the case of labor union demands, the decrease widened to 101,000 to 125,000.
Low-income jobs are predicted to decrease by at least 25,000 to a maximum of 29,000 when the minimum wage is 10,000 won. 207,000 to 247,000 decreased when the labor union demand was accepted.
Small businesses with 1 to 4 workers are estimated to lose up to 29,000 jobs if the minimum wage is 10,000 won, and 196,000 jobs if the labor union demands 12,210 won.
Professor Choi Nam-seok said, “Recently, small businesses are experiencing difficulties in reducing sales and increasing inventory due to the severe economic recession.