I chose to start a business rather than become a salaried worker… 1 in 5 self-employed people in their 20s close their business

Last year, 910,000 self-employed people closed their businesses… Increase in 4 years
Business closure rate: 20.4% in those in their 20s, 14.2% in those in their 30s… Above average
Rep. Park Seong-hoon “We must make efforts to support Changwon and provide jobs”

The number of self-employed people has decreased for six consecutive months as business closures increase due to sluggish consumption, labor costs, and high interest rates. According to the National Statistical Office, the number of self-employed people last month was 5,721,000, a decrease of 62,000 from the same month last year, marking the 6th consecutive month of decline since last February and the first time since the coronavirus outbreak. In particular, the number of self-employed people without employees was 4.273 million, a decrease of 110,000 from July of last year, showing a decline for 11 consecutive months since September. On the 19th, a rental notice was posted at a store in a dense shopping area in Seoul. 2024.08.19. Newsis

It was found that the number of young people closing their businesses increased significantly last year. As the job market narrows, people turn to starting their own businesses, but as the situation continues to be difficult, some point out that efforts should be made to provide quality jobs along with careful support for start-ups.

According to the National Tax Service’s ‘Status of Business Owners by Age’ received by the office of People Power Party lawmaker Park Seong-hoon, a member of the Planning and Finance Committee of the National Assembly on the 5th, the number of self-employed people who closed their businesses last year was 910,819, a 13.9% increase compared to 2022 (799,636). The growth rate of business closures showed a negative growth rate for three years after recording 2.6% in 2019, before rebounding last year.

The business closure rate, which refers to the number of business closures compared to all individual business owners (operating businesses + closed businesses) last year, was 9.5%. Those in their 20s who are new to society accounted for 20.4%. One in five young people who started a business ended up closing it. The business closure rate for people in their 30s was also in double digits at 14.2%. It showed a high level of business closure rate compared to other age groups, such as those in their 40s (9.9%), 50s (8.0%), 60s (7.0%), and over 70s (6.7%).

Even when running a business, the majority of people’s income does not even reach the minimum wage. Of the 11,464,368 comprehensive income tax returns for businesses involved in the National Tax Service in 2022, 8,609,018 cases, or 75.1%, had an annual income of less than 12 million won. This means you can’t even earn 1 million won per month. Of these, 944,250 reported no income at all. The proportion reached 8.2%.

The number of young people choosing to start a business has increased due to limited employment prospects, but they are also experiencing a bitter taste in the startup market. As companies increasingly reduce hiring, young people are experiencing greater employment difficulties than in the past.

According to the results of a survey on ‘Recruitment Plans for the Second Half’ conducted by Job Korea on 285 corporate human resources and recruitment managers in August, the number of companies that responded that they have plans to hire new employees in the second half of this year increased by 27.4 percentage points (p) compared to the previous year (69.5%). ) decreased to only 42.1%. Employment at large companies favored by young people has also decreased. In a survey conducted by the Federation of Korean Industries last August, 57.5% of hiring managers at large companies responded that they had not made plans to hire new employees in the second half of this year or would not hire them.

As both starting a business and finding a job become more difficult to enter, the period of job search preparation is getting longer. According to Statistics Korea’s National Statistics Portal (KOSIS), the number of unemployed people was 564,000 as of last August. Among them, 113,000 people, or 20.0%, had been looking for a job for more than 6 months. This is the highest level in 25 years since August 1999 (20.1%) during the aftermath of the foreign exchange crisis.

Representative Park Seong-hoon said, “Young people who have chosen to start a business due to a lack of jobs are not able to withstand the fierce competition for self-employment.” He added, “The priority is to provide quality jobs to young people along with the government’s careful support for starting a business so that they can escape the shackles of starting a business without preparation.” “It must be done,” he emphasized.

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2024-10-07 01:03:19