Opportunities for individuals to move up to higher income brackets or escape lower ones are dwindling. The percentage of people experiencing movement between income brackets has fallen to its lowest level since statistics began, with one in four individuals who were in the bottom 20% eight years ago remaining in that same group. More than half of those in the top 20% have also maintained their status over the past eight years. While it is increasingly difficult for low-income individuals to rise, those in high-income brackets are more likely to retain their positions.
According to the National Data Agency's '2024 Income Mobility Statistics' released on October 29, the income mobility rate, which measures the percentage of individuals whose income brackets changed between 2023 and 2024, stands at 33.0%. This marks a 1.2 percentage point decline from the previous year and is 2.8 percentage points lower than the 35.8% recorded in 2018, the first year of the statistics.
The percentage of individuals moving up in income brackets is 16.9%, slightly higher than the 16.1% who experienced a decline. However, the upward mobility rate has decreased by 0.5 percentage points compared to the previous year. Notably, the upward mobility rate among young people is 22.4%, exceeding the overall average, but it has also seen a decline from the previous year. The income mobility rate for young individuals is now at 39.3%, down from last year. For middle-aged individuals, the rate is 30.4%, while for seniors, it is 24.4%, indicating that income mobility decreases with age.
The entrenchment of low-income individuals is even more pronounced. Among those in the bottom 20% in 2023, 70.7% remained in that same group in 2024, an increase of 0.6 percentage points from the previous year. The percentage of individuals moving out of the bottom 20% has decreased to 29.3%, down from 29.9% last year. In contrast, the retention rate for those in the top 20% has risen to 86.5%, an increase of 0.6 percentage points from the previous year. The percentage of individuals entering the top tier has decreased to 3.4%, down by 0.1 percentage points from last year. This indicates a reduced likelihood for low-income individuals to rise, while high-income individuals are increasingly maintaining their status.
Long-term trends reveal a clearer picture of income entrenchment. Among those who were in the bottom 20% in 2017, 24.9% remained in that same group eight years later in 2024. In the top 20%, 56.0% maintained their status after eight years. A significant portion of low-income individuals has been unable to escape their income bracket over the long term, while more than half of those in the upper tier have retained their positions.
Changes in income amounts also indicate a weakening momentum for income growth. In 2024, 61.4% of individuals reported an increase in earned or business income compared to the previous year, a decrease of 2.6 percentage points. The percentage of individuals experiencing a decrease in income rose to 36.0%, an increase of 2.1 percentage points. While the proportion of individuals with less than a 10% increase in income rose to 24.6%, those with increases between 10% and 50% fell by 3.1 percentage points, and those with increases over 50% dropped by 1.8 percentage points. This suggests that even when income increases, the growth is often minimal.
This trend is attributed to a combination of an aging population and changes in the labor market. The proportion of young individuals among those included in the income mobility statistics has decreased by 0.9 percentage points compared to the previous year, while the proportion of seniors has increased by 0.9 percentage points. The growing share of seniors, who typically have lower income mobility, has contributed to the overall decline in income mobility, according to the National Data Agency.
* This article has been translated by AI.
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