North Korea’s informal labor markets boom as jangmadang trade loses viability

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A “grasshopper market,” or unofficial market, in a village near Pyongyang. (Chinese blogger Lóng Wǔ*Láng Zhī Wěn)

Growing numbers of North Koreans are turning to informal day-labor markets to earn a living as tightened controls on jangmadang (the semi-official street markets that form the backbone of North Korea’s informal economy) during the rice-planting season make everyday trading increasingly untenable. Rising exchange rates and price instability have already squeezed profit margins for small traders, and the added pressure of farm mobilization restrictions is pushing more people toward selling their labor rather than goods.

A source in South Pyongan province told Daily NK on Friday that the number of people showing up to informal labor markets in Anju and other inland cities has risen noticeably in recent weeks. Workers begin gathering before dawn to compete for available jobs. The state reduces jangmadang operating hours during rice-planting season and steps up enforcement against people moving freely through public spaces, as authorities prioritize channeling labor into the agricultural mobilization campaign. In practice, however, the source said the mobilization order is widely circumvented, with those who can find ways to avoid it doing so, while others who actually work the fields are a separate group altogether.

Labor markets fill the gap left by struggling traders

The shift toward day labor reflects a broader deterioration in market conditions. Currency exchange rate volatility has made it difficult for small traders to manage costs: buying goods at one rate and selling them later at a different rate can produce losses rather than profits. Consumer spending has also weakened as prices rise, further reducing the appeal of market trading as a livelihood strategy.

By contrast, informal labor markets offer a lower barrier to entry. No startup capital is required, and even older workers or those without specialized skills can find paying work. The available jobs have diversified beyond the skilled trades that once dominated these markets, such as carpentry, plastering, and electrical repair. Demand has grown for unskilled labor including construction site hauling, caregiving, domestic cleaning, and other general work.

The source noted that many people who previously traded at the jangmadang are now instead sitting at labor market gathering points looking for day jobs. The informal labor market, the source explained, appeals to the most economically vulnerable: even picking up a single simple job in a day covers the cost of a meal, and showing up costs nothing if no work is found.

Illegal but entrenched

North Korean authorities have long classified informal labor markets as illegal and have periodically moved to shut them down. Despite this, the markets have persisted through successive crackdown cycles. With jangmadang trade in a prolonged slump, informal labor markets appear to be consolidating their role as a primary survival mechanism for working-age North Koreans with limited options.

The source predicted that demand for informal labor markets will continue to grow, reflecting a spreading attitude among ordinary North Koreans that hard physical work, however exhausting, at least guarantees some income.

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