Self-employed people in their 50s who closed their stores in the aftermath of Corona 19 are appearing one after another. With strong social distancing, domestic demand is shrinking, and the burden of livelihoods for seniors is on the rise. In particular, the government support, including the 4th disaster support fund, is concentrated on self-employed people whose sales have declined, so it is a good cake for those who have already closed their doors. It is pointed out that there is a need for support measures to help self-employed people who have closed their business without enduring the damage of Corona 19 to get up again.
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A direct hit by self-employed people in their 50s who ran a face-to-face service
The aftermath of the strengthening of quarantine measures following the third re-proliferation of the corona, which continued from the end of last year, was significant. According to the employment trend of the National Statistical Office, the number of self-employed in January was 5.335,000, a decrease of 2.3% (127,000) compared to the same month last year, the most decline in 10 years since January 2011 (-3.2%). The number of self-employed people is the lowest in 27 years since 1994 (5376,000 people).
Most of the self-employed who are closed are the elderly. E-Daily analyzed the employment trend microdata on the 8th, and found that the number of self-employed people in their 50s decreased by 111,000 from 1597,000 in January of last year to 1486,000 in January of this year. This means that many of the self-employed people who closed their business were in their 50s.
Those in their 40s (1245,000) decreased by 47,000 and those in their 30s (692,000) decreased by 17,000, respectively, while those over 60 (1727,000) increased by 54,000.
The reason why self-employed people in their 50s close their business a lot is the high proportion of in-person service industries, which were hit hard by Corona 19.
The industries in which the number of self-employed people declined the most were wholesale and retail (50,000 people), education and service (-45,000 people), and lodging and restaurants (-35,000 people), while those in their 50s decreased by about 67,000 people here alone. Wholesale and retail businesses are the largest with 46,000, followed by accommodation and restaurant businesses with 14,700, and education and service businesses with 6,500.
In the job market as well, the damage suffered by the face-to-face service industry due to the corona crisis is intact. In January, the number of employed people decreased by 982,000 compared to the same month of the previous year, which was the largest decline in January since 1998 at the time of the financial crisis. Among them, 585,000 people, or more than half, in wholesale, retail and lodging foods fell sharply.
In their 50s, they are often the heads of households. In 2019, the proportion of heads of households in their 50s out of the total 20.34 million households, the highest at 23.6% (4.8 million). This was followed by those in their 40s (4259,000) and in their 60s (3529,000).
The head of the household has no time to rest. The number of former self-employed people among the inactive population who did nothing in January last year was 37,699, down 21.0% (about 10,000 people) from a year ago (47,800 people). The size of the decline (about 10,000 people) is the largest among all age groups. During the same period, the number of people aged 60 and over increased by 25.3% (about 21,000) to 104,100.
Even though more than 110,000 self-employed people in their 50s have closed their doors, the number of people taking a break is rather reduced because they immediately jumped into the job line after closing their business. It seems likely that many of them were concentrated in vulnerable jobs such as temporary and daily jobs.
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◇“No answer to re-starting… Need for good job inducement”.
The government provided a new desired fund of up to 2 million won to small business owners and self-employed persons affected by business bans and restrictions through the second disaster subsidy fund, which was first selectively supported last year, but small business owners and self-employed persons who were closed or closed were excluded from the support.
Instead, in the name of supporting the re-challenge, it paid 500,000 won each to 200,000 people. In the third disaster support fund, there were no additional measures other than extending the existing business until the remaining budget organized in the second period was exhausted.
On the 2nd, the government expanded the size of the disaster subsidy to 1.95 trillion won. Disaster subsidies for self-employed persons are currently raised to a maximum of 5 million won, and overlapping support has been made available for multiple stores, but support for self-employed business owners has not changed. Although the requirement for re-challenge incentive payments was eased, the number of targets for new support was expanded to 81,000, but the amount was 500,000 won, the same as before.
However, the Small Business Market Promotion Corporation is providing support such as a demolition fee of up to 2 million won to the self-employed who are out of business, and a maximum of 1 million won in incentives for job search or job completion, and the Yellow Umbrella Mutual Aid Association to provide deductions to self-employed people who are out of business. When it comes to hemostasis.
Dong-yeol Yoon, a professor of business administration at Konkuk University, said, “As the Corona 19 incident occurred, there is a need to realize policies for self-employed people who are out of business, and to expand membership in a system such as the Yellow Umbrella Deduction. In regards to this, policies should be implemented in the direction of inducing decent jobs.”
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