Employment-to-output ratio drops from 8.2 to 7.8

A DDR5 DRAM module for laptops, photographed against the backdrop of Samsung Electronics' Seocho-gu headquarters in Seoul. [Herald DB]
A DDR5 DRAM module for laptops, photographed against the backdrop of Samsung Electronics' Seocho-gu headquarters in Seoul. [Herald DB]

South Korea's export share and value-added ratio both rose in 2024, driven by a strong recovery in semiconductor exports.

However, the employment-to-output ratio fell from 8.2 to 7.8, underscoring that the export boom has yet to translate into broader job creation.

According to the Bank of Korea's 2024 input-output tables released Monday, the total supply of goods and services in the South Korean economy reached 7,113.6 trillion won ($5.14 trillion), up 310.9 trillion won, or 4.6 percent, from the previous year.

Domestic output accounted for 85 percent of total supply, with imports making up the remaining 15 percent.

The share of external transactions — exports and imports combined — in total supply rose 1.5 percentage points to 31.1 percent from 29.6 percent, reflecting the increase in exports.

The export ratio — exports as a share of total output — climbed 1.7 percentage points year-on-year to 19 percent in 2024.

The ratio for manufactured goods rose from 34.1 percent to 37.1 percent, led by assembled and processed products, while the services ratio edged up from 6.6 percent to 7.3 percent, driven by wholesale, retail and transportation services.

The import ratio held largely steady at 15 percent, little changed from 14.9 percent the previous year.

"In 2024, the semiconductor sector emerged from a slump and staged a strong recovery, exerting a major influence on structural changes in the economy," said Bu Sang-don, head of the Bank of Korea's input-output team. "As semiconductor exports shifted to large-scale growth, the export share in the economy rose, and the share of production value added induced by exports also expanded."

Looking at the industrial structure, the share of manufactured goods in total output edged up from 41.2 percent to 41.3 percent. The share of assembled and processed products — including computers, electronics and optical equipment — rose sharply from 17.5 percent to 18.3 percent, while basic materials such as coal, petroleum products and chemicals fell from 16.1 percent to 15.6 percent.

The services share also increased, from 48.1 percent to 48.5 percent.

In terms of value-added composition, the share of manufactured goods rose from 25 percent to 26 percent, while the services share declined from 65.4 percent to 64.1 percent.

The value-added ratio — value added as a share of total input — rose 0.8 percentage points to 42 percent in 2024, marking a second consecutive year of gains after climbing from 40.1 percent in 2022 to 41.2 percent in 2023. Higher value added from assembled and processed products and a decline in import prices for raw materials such as coking coal drove the improvement.

Import dependency — the ratio of imported intermediate inputs to total inputs — fell from 13.6 percent to 13.3 percent. The electricity, gas, water and waste sector saw a particularly sharp drop, from 37.9 percent to 33.6 percent.

"The value-added ratio rose on the back of higher semiconductor operating profit margins, and the share of manufactured goods in total value added also increased," Bu said. "Semiconductor exports have continued to grow strongly into this year, so the trend of expanding export and manufacturing shares is expected to strengthen further."

The number of full-time equivalent workers stood at about 25.96 million in 2024, down 28,000, or 0.1 percent, from the previous year. Full-time equivalent employment converts the working hours of part-time workers into a full-time standard and includes salaried workers — both permanent and temporary — as well as the self-employed and unpaid family workers.

By employment type, the share of permanent salaried workers rose from 61 percent to 61.3 percent, while the share of temporary and daily workers fell from 14.5 percent to 14.3 percent.

The share of female workers rose from 40.5 percent to 40.8 percent.

By sector, the services share of employment rose from 71.7 percent to 72 percent, while construction fell from 7.2 percent to 7.1 percent and agriculture, forestry and fisheries from 5.4 percent to 5.3 percent.

The employment-inducing coefficient — the number of jobs created directly and indirectly across all industries per 1 billion won of final demand — fell to 7.8 from 8.2 the previous year.

"Because the semiconductor sector has a low employment effect, the number of jobs induced remained roughly flat with the previous year despite the strong export performance," Bu said. "However, the number of workers in semiconductor manufacturing has been rising since 2025, so the impact of the semiconductor boom on employment could be greater than before."


kimstar@heraldcorp.com