Income growth dwindles for 20s, 30s

Annual income growth for households headed by those in their 20s and 30s has been waning as the economic slowdown casts a shadow over young adult employment.

According to Korea’s statistics bureau and financial data, the average annual salary increase for young employees decreased to 2.67 percent in the third quarter of 2012, from 5.31 percent in the fourth quarter of 2011.

Meanwhile, households headed by those in their 40s and 50s, Korea’s main workforce, saw their annual income increase about 6 to 10 percent on average as most of them remain regular employees.

Experts attributed the growth rate to strong labor unions which consist mainly of those in their 40s demanding annual pay increases.

This is further widening the pay gap between the young and old as the elder generation cling onto their jobs, while the young face difficulty securing stable careers amid the slowdown.

By Park Hyong-ki (hkp@heraldcorp.com)