Freezing service-oriented employment
Exports expected to increase by 10-12% in the first quarter
A container ship is loading cargo at Gamman Pier in Busan Port. yunhap news
Amid the influence of Corona 19, domestic demand is expected to continue sluggish this year and exports are expected to increase.
The Korea Development Institute (KDI) diagnosed that domestic demand intensified due to the third corona19 epidemic in’February Economic Trends’ on the 7th, but partially eased the economic sluggishness as product exports increased. However, as the strengthened social distancing measures in January are maintained, sluggish consumption is expected to continue for the time being.
KDI analyzed that “consumption and employment have drastically decreased due to the re-proliferation of Corona 19, and the economic slump is continuing, centered on domestic demand.”
Credit card sales in January estimated based on Shinhan Card sales decreased 14.4% from a year ago. The decline was smaller than in December last year (-16.2%), but compared to November (-4.2%), the decline was rather large.
The production of the service industry declined 2.2% in December last year, which is a larger decline from the previous month (-1.4%). In particular, it was found that the accommodation and restaurant businesses (-17.1%→-39.5%) and art, sports, and leisure-related service businesses (-30.0%→-40.6%) contracted sharply due to the strengthened distance-taking measures in early December.
The labor market also froze, centering on the service industry and temporary and daily workers.
In December of last year, the number of employed decreased by 628,000, a sharp increase from the previous month (-273,000). In particular, the decline in service industry (-287,000 people → -622,000 people) and temporary/daily workers (-206,000 people → -521,000 people) was remarkable.
On the other hand, exports and facility investment maintained a high growth trend due to the improvement in demand for foreign goods, and the manufacturing industry continued to grow solid. The export growth rate in January was 11.4%, a high level following the previous month (12.6%). Semiconductors (21.7%), wireless communication devices (58.0%), and automobiles (40.2%) showed high growth rates. The Export-Import Bank’s Overseas Economic Research Institute predicted that in the first quarter of this year, exports will increase by 10 to 12 percent from the same period last year to reach 145 billion dollars. According to the research institute, the leading export index in the first quarter was 120.3, up 2% from the same period last year, turning upward in six quarters. Compared to the previous quarter, it rose 3.2% and rose for the second consecutive quarter.
Reporter Um Hyung-jun, reporter Sejong=Woo Sang-gyu [email protected]
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