Korea trapped in state of declining productivity

  • South Korea’s workers endure longer hours than many OECD countries yet experience lower earnings, a discrepancy that’s contributing to sluggish economic growth and prompting calls for productivity-focused government action.
  • Despite extended work hours, Korea’s workforce productivity per hour ranks 33rd among 37 OECD members, with concerns growing due to an aging population and low birthrate. The gap between labor input and added value, indicating sluggish productivity growth compared to wage increases, has led to a two percent drop in productivity across industries in Q1 2023.
  • Demographic changes and inadequate support for advanced services compound the issue, prompting experts to urge policies that bolster productivity.

External Link : https://www.koreatimes.co.kr/www/biz/2023/08/488_357515.html