Coronavirus employment shock in full swing, employment declined 630,000 in December

On the 13th, job seekers enter the office to apply for unemployment benefits at the Seoul Western Employment Welfare Plus Center in Mapo-gu, Seoul. [뉴시스]

The Moon Jae-in administration, who declared itself the’job government’, produced the worst employment report card in 22 years. It is the effect of the economic downturn deepened by the novel coronavirus infection (Corona 19).

According to the National Statistical Office on the 13th, the number of employed last year was 26.94,000, a decrease of 218,000 from a year ago. It has recorded the largest job loss since 1998. There were only four cases in which the number of employed per year decreased from the previous year: the oil crisis in 1984, the foreign exchange crisis in 1998, the credit card crisis in 2003, and the global financial crisis in 2009.

Decrease in employed for 10 consecutive months excluding January and February

Excluding January and February of last year, the number of employed decreased for 10 consecutive months (compared to the same period last year). It was the longest since it declined for 16 consecutive months due to the financial crisis in the late 1990s. Last December, the number of employed fell 628,000 from a year ago. It has been 21 years and 10 months since February 1999 (-658,000 people) that the number of jobs has decreased on a monthly basis. The decline in the number of employed in December of last year exceeded last year’s April (-476,000) and October (-421,000).

Changes in the number of employed and unemployed Graphic = Reporter Kim Joo-won [email protected]

Last year, the number of employed decreased significantly in the wholesale and retail business (160,000 people), accommodation and restaurant business (-159,000 people), and education service business (-86,000 people) by industry. It is an industry full of face-to-face service jobs that were hit directly by Corona 19. In particular, temporary (-313,000 people) and daily workers (-101,000 people) saw a significant reduction in jobs. This means that the damage to the vulnerable, classified as a’weak link’ of employment, was relatively large.

The increase in employment is the so-called’controlled’ jobs such as public administration, social security, and social welfare. These jobs, with more than 3 million people, served as a’buffer’ that somewhat lessened the employment shock caused by Corona 19. However, in winter, the public work project was ended one after another. This is the limit of government job countermeasures centered on temporary workers created by pouring out Narat money.

Last year, the only age group that increased jobs was those in their 60s (375,000 people). Kim Sang-bong, a professor of economics at Hansung University, analyzed that “the effect of jobs for the elderly that was created by spending money such as turning off lights, picking up cigarette butts, and helping students to and from school was outstanding.

Hong Nam-ki, Deputy Prime Minister of the Economy and Minister of Strategy and Finance (center), examines the job market situation and discusses countermeasures at the Ministerial Meeting held on the 13th with the main content of’December 2020 and Annual Employment Trends’. [연합뉴스]

The number of self-employed people without employees, in other words,’I’m alone,’ increased by 90,000 last year. By the way, the number of self-employed employees decreased by 165,000. There are many cases where employees are sent out and self-employed people do business alone or close their doors. Dankook University economics professor Kim Tae-gi said, “The decrease in the number of self-employed people with employment staff and the number of self-employed persons is a phenomenon that appears during the recession.” I can see it.”

Indicators such as the unemployment rate and employment rate are also deteriorating. Last year, the unemployment rate was 4%. It has risen to the 4% level for the first time in 19 years since 2001. Last year, the number of unemployed people was 1.18,000, the highest since the change in statistics in 2000. Last year, the employment rate was 60.1%. It is 0.8 percentage points lower than a year ago. This is the lowest figure in 7 years since 2013 (59.8%).

Jobs in their 60s or older that have not been compromised by Corona 19. Graphic = Reporter Cha Junhong [email protected]

Chung Dong-myeong, head of the Social Statistics Bureau of Statistics Korea, said, “The reduction in the number of jobs (number of employment) has increased considerably, mainly in the face-to-face service industry, due to the 2.5 step adjustment of social distancing last December.” Director Jung explained that the slowing increase in the number of employed in the public administration and health and welfare sectors also had an impact. He added, “The base effect that the December 2019 (employment) situation was good is also mixed.”

Considering so-called’shadow unemployment’ such as’just taking a break’ or temporary leave, the employment cold is much more serious. Last year, 2,374,000 people said that they’just took a break’. The number of people increased by 282,000 in one year, the highest since the statistics were prepared in 2003. The number of temporary leavers was 837,000, a sharp increase of 430,000 in one year. This is the largest increase since the start of writing statistics related to 80 years. Temporary leavers are classified as employed even though they do not work.

Job budget increased by 21%, the highest ever

Last year’s job budget was a record high of 25.8 trillion won, a 21.3% increase from the previous year. Last year, four additional budgets were organized (additional budget) and more money was poured out, but it was useless. Corona 19 wasn’t enough for the worsening employment of scratches.

Employment has a lagging effect that reflects the economic situation three to six months ago, so it is unlikely that the job market will improve for the time being. Professor Kim So-young of the Department of Economics at Seoul National University predicted that “the corona crisis is prolonged and employment deterioration is worsening.” Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance presided over a meeting of the Central Emergency Management Agency on the 13th. Deputy Prime Minister Hong said, “The physical strength of the job market has significantly deteriorated due to the employment shock caused by Corona 19.” He predicted that the difficult employment situation could continue until next month.

Sejong = Reporters Jo Hyun-suk and Kim Ki-hwan [email protected]