In particular, concerns about the decline in economic vitality are growing as employment in their twenties and those in their 30s and 40s, which is the backbone of the economy, are declining.
The January employment index released by the National Statistical Office on the 10th is the worst in about 20 years since the end of 1998, when the International Monetary Fund (IMF) financial crisis.
Last month, the number of employed was 25818,000, down 982,000 from a year ago. This is the largest decline since December 1998 (-1283,000 people) during the financial crisis.
Last year March (-195,000), April (-476,000), May (-392,000), June (-352,000), July (-277,000) , August (-274,000 people), September (-392,000 people), October (-421,000 people), November (-273,000 people), December (-628,000 people) Following this, the decline continued until the first month of the new year, but this is the first time the decline has reached 1 million.
The number of unemployed increased by 417,000 to 1.57 million. The unemployment rate was 5.7%, up 1.6 percentage points from a year ago. As of January, the unemployment rate of 5.7% is the highest since January 2000.
The quality of employment has also deteriorated. The number of employees who worked more than 36 hours per week decreased by 7.5%, or 1589,000, and the number of employees who worked less than 36 hours increased by 262,000 (5.1%).
Chung Dong-wook, head of the Statistical Office’s Employment Statistics Division, said, “As the distance between them increased on December 8th, the decline in the number of employed in the face-to-face service industry such as lodging and restaurant business, wholesale and retail business has expanded.” There was also a decrease in daily employment due to,” he said.
Experts believe that the employment index is shocking even considering the factors that strengthen social distancing and the base effect of the increase in the number of employed in January.
In particular, the wounds of declining jobs in their 20s and 40s, which play a pivotal role in the economy, are serious. Compared to a year ago, there were 255,000 people in their 20s, 273,000 people in their 30s, and 170,000 people in their 40s, and about 700,000 jobs were evaporated only in their 20s and 40s. For those in their twenties, since January of last year, and since February of last year, for those in their thirties, the range of job declines has increased, while those in their 40s have continued to decline for the last five years.
The government is also taking this situation seriously.
Deputy Prime Minister Hong Nam-ki said, “In view of the seriousness of the employment situation, we will put the highest priority on maintaining employment, providing direct jobs, strengthening protection for those outside the job market, and promoting jobs in the private sector.”
The government plans to provide direct jobs by creating 900,000 financial jobs + α in the first quarter, while expanding the number of public institutions hired in the first half and quickly hiring 4,300 hands-on interns.
Experts agree that financial jobs are only temporary prescriptions, and that private companies should eventually create decent jobs.
It is pointed out that in order to revitalize businesses, the government needs to temporarily postpone or ease various legislation that restricts business activities.
Seok-jin Woo, professor of economics at Myongji University, said, “In times of emergency, special measures should be taken.” “If a job is the best welfare, so if it helps employment, various regulations that companies feel realistic pressure should be able to review measures to ease even temporarily. I said.