It has been proposed that the inter-company transactions of large corporations trigger 'jobless growth’ in the economy.
Director La, Jung Joo of Pi-Touch Institute has released on the 5th a report titled, 'The Effects of Inter-Company Transactions of Large Corporations on National Economy’.
According to the report, the domestic market has matured since the financial crisis in 1997 but there has been a phenomenon of “jobless growth” in which gross production has increased while total demand for labor has decreased.
In a mature market, the number of workers decrease as the number of independent start-ups increase, and the decrease in labor supply leads to an increase in wages. The increase in wages leads to an increase in consumption and gross production, which then increases the labor demand of independent enterprises.
Director La stated, “When a large-scale independent firm with high demand for labor enters the market, the total labor demand may not decrease. However, if inter-company transactions of large corporations occur, independent firms are blocked by the affiliates of the large corporations and may not enter the market.”
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