Average Monthly Income of Urban Workers’ Households Exceeded Three Million Won for the First Time

The average monthly income of urban workers’ households exceeded three million won for the first time. In addition, a survey showed that private educational expense, such as cram school fees, increased by 38.3 percent, which is a big burden to the workers’ living costs.

According to “The trend of incomings and outgoings of urban workers’ households in the third quarter,” a survey comprised of 3,600 households in cities and provinces presented on November 24 by the National Statistical Office (NSO), the average monthly income per household increased by 5.4 percent, compared to the same period of last year, reaching 3,019,000 won.

The income of urban workers’ households is their total earnings for a given period of time, which consists of salaries of householder and spouse, retirement allowances, earnings from side jobs and interest receipts. In ordinary revenues, earned income increased by 9.2 percent to 2,684,000 won. However, business income decreased by 2.1 percent to 91,000 won and income from estates decreased by 25.5 percent to 41,000 won, due to the economic slump.

In earned income, householder’s income showed an increase of 9.2 percent, reaching 2,684,000 won and spouse’s income showed an increase of 18.8 percent, reaching 322,000 won. As a result, the conclusion was that housewives started to work for a living while economic slump continued.

Extraordinary revenue decreased by 19.7 percent, reaching 126,000 won due to large reductions in retirement allowance.

The average monthly expenditures of urban workers’ households showed an increase of 7.4 percent, compared with the same period of last year, reaching 2,312,000 won.

In particular, supplementary educational fees, which are private educational expenses such as cram school fees and private lesson fees, increased by 38.3 percent reaching 124,000 won. In addition, households of husbands and wives both working increased expenses for eating out by 16.2 percent reaching 253,000 won and expenses for housework services, such as child nurseries, increased by 54.6 percent. Kwon Oh-sool, head of a social statistic department in NSO said, “The increase in the number of economically active women indicates the increase in the number of household where both the husband and wife are working,” analyzing that “this appears to have made the biggest influence on the income and expenditures of urban workers’ households in the third quarter.”

Kwang-Hyun Kim kkh@donga.com