Households’ monthly income grows 6.9%

South Korean households’ monthly income grew 6.9 percent on-year in the first quarter of this year thanks to improved employment conditions, a government report showed Friday.

According to the report by Statistics Korea, households’ monthly income averaged 4.12 million won ($3,540) in the January-March period, compared with 3.85 million won a year earlier.

Inflation-adjusted household income gained 3.8 percent from a year earlier, an improvement from a 3.2 percent increase in the fourth quarter of last year. The disposable income of local households grew 6.8 percent on-year to a monthly average of 3.33 million won

The gain in households’ monthly income was attributed to expanded employment and overall improvements in the job market.

“Earned income, which makes up 65.3 percent of all household earnings, jumped 8.2 percent in the first three months, which helped overall numbers,” the statistical office said.

Labor market conditions showed steady signs of improvement, with 467,000 jobs being created in the cited months. The number of regular workers, who have better job security and higher wages, moved up to 45.2 percent of the total workforce, from 44.4 percent a year earlier.

Since October, South Korea has been able to add more than 400,000 positions per month, with numbers hitting 455,000 in April.

Besides earned income, business and property-related earnings rose 2.6 percent and 3.7 percent, respectively.

The report, meanwhile, showed household expenditures rising 5.3 percent on-year to 2.56 million won per month.

Of the total, expenditure on education reached an average of 365,000 won, followed by groceries and money spent on housing and utilities that stood at 322,900 won and 295,800 won, respectively. 

(Yonhap News)