By Lee Hyo-sik
Staff Reporter

The number of jobs at state-invested firms, financial institutions and other large firms that provide handsome salaries and more generous benefits has dropped since the 1997-98 Asian financial crisis. Instead, the number of non-regular workers and financially unstable self-employed has increased over the past decade, worsening the country's job quality.

According to Hyundai Research Institute on Sunday, Korea's jobless rate has fallen to the 3-percent range from nearly 7 percent in early 1998. But the number of so-called ``decent jobs'' fell to 1.31 million in 2005 from 1.54 million in 1997. Decent jobs are defined as those in top 30 private business corporations and public enterprises, which pay wages higher than the industry average.

On the other hand, non-regular workers without job security and other benefits accounted for 47.2 percent of the country's total salaried workers in 2005 and about 26.5 percent of the total workforce were self-employed.

``The country has seen its total number of jobs increase since the Asian financial crisis on continued economic expansion, but there has been little growth in terms of income because of a fall in the number of jobs at companies offering high incomes,'' the institute said. ``Coupled with the rising number of low-income jobs, the trend has lowered households' disposable income and also widened income disparity among workers.''

It also said large business groups and financial institutions have transformed their business structure from labor-intensive one to capital- and technology-focused one over the years, not having to hire as many employees as they used to.

``Also, businesses have become reluctant to hire new workers amid uncertain economic outlook. But in the services sector, more people have opened restaurants and other small businesses to make ends meet, hiring workers mostly on a non-regular and temporary basis,'' the institute noted.

The number of positions at large companies employing over 300 workers decreased to 1.8 million in 2005 from 2.51 million in 1995, while jobs at small- and medium-sized enterprises (SMEs) with fewer than 49 employees rose to 15.2 million from 13.6 million over the past 10 years.

The institute also said the number of manufacturing jobs fell by 260,000, but the services sector added 1.71 million new jobs. It said self-employed or small companies with fewer than nine employees have created the majority of new jobs over the past 10 years, which usually offer lower salaries and fewer benefits, compared with regular manufacturing positions.

To generate more decent jobs, the government should help create a more business-friendly environment and encourage both domestic and foreign companies to make investment here, the institute said.

``The government also needs to help the services industry strengthen its competitiveness and create valued-added jobs. It should invest more to help workers upgrade themselves through a range of training programs as well as build a better social safety net,'' it noted.

leehs@koreatimes.co.kr