Steep hike to minimum wage hurting Korea's economic growth: IMF
- 5 years ago
Further hikes to the minimum wage are likely to hinder South Korea's economic growth,... by slowing down short-term employment.
That's according to the International Monetary Fund's assessment released this week.
The report cited sluggish global trade,... especially in semiconductors,.. as well as the country's slowing employment growth,... as factors that threaten the economy.
It noted the sharp increases in the minimum wage,... of 16-point-four percent in 2018 and 10-point-nine percent this year,... have likely hurt the employment prospects of low-skilled workers.
The IMF report advised against initiating another steep hike to the minimum wage,... and said that next year's increase should be below the labor productivity growth rate.
That's according to the International Monetary Fund's assessment released this week.
The report cited sluggish global trade,... especially in semiconductors,.. as well as the country's slowing employment growth,... as factors that threaten the economy.
It noted the sharp increases in the minimum wage,... of 16-point-four percent in 2018 and 10-point-nine percent this year,... have likely hurt the employment prospects of low-skilled workers.
The IMF report advised against initiating another steep hike to the minimum wage,... and said that next year's increase should be below the labor productivity growth rate.