492,000 New Hires in February... Surge in 'Temporary Leave Workers' Due to COVID-19 Impact (Comprehensive)

Over 570,000 Increase in People Aged 60 and Above, Largest Rise in Statistics History
Surge in Senior Jobs Offsets Declines in Teens, 20s, and 40s
Survey Conducted Before COVID-19 Case Spike, Limiting Reflection of Pandemic Impact

[Asia Economy reporters Kim Hyunjung and Joo Sangdon] In February this year, the number of new employed persons increased by more than 490,000, continuing the trend of increasing by more than 300,000 for seven consecutive months. However, the increase was driven by the number of new employed persons aged 65 and over, which exceeded twenty times that of those in their 30s, and the number of temporarily suspended workers, including unpaid leave, increased at the largest rate in over ten years, indicating that the quality of employment has not improved.

According to the 'February Employment Trends' announced by Statistics Korea on the 11th, the number of employed persons last month was 26,838,000, an increase of 492,000 (1.9%) compared to the same month last year. Although the increase was smaller than the previous month (568,000), the figures maintained a favorable employment atmosphere with new employed persons exceeding 300,000 for seven consecutive months since August last year (452,000).

However, a closer look at the details, including the age of new employed persons, reveals concerns about the quality of employment. By age group, the increase in new employed persons in February was driven by those aged 60 and over. The number of new employed persons aged 60 and over reached 570,000, the highest since monthly employment statistics began in July 1982, offsetting decreases among teenagers (-25,000), those in their 20s (-25,000), and those in their 40s (-104,000). In particular, the number of new employed persons aged 65 and over increased by 386,000, more than twenty times that of those in their 30s (19,000). This is the largest increase since 1989, when data began to be compiled separately by age group.

It is also difficult to assume that all employed persons aged 60 and over were actually working and earning income in February. Many elderly people, who are relatively vulnerable to COVID-19 infection, entered a state of temporary leave, and some voluntarily postponed work. However, even in such cases, if employment status is maintained, they are included in the number of employed persons. In this regard, the number of temporarily suspended workers who were not working despite being employed increased by 142,000 last month. This is the largest increase since February 2010, when it rose by 155,000. Temporarily suspended workers refer to those who could not work due to illness, accident, education, etc., but are certain to return, including those on unpaid leave (up to six months).

By industry, the number of new employed persons in accommodation and food services, affected by COVID-19, increased by only 14,000 (0.6%), a significant decrease compared to the previous month (3.8%). In particular, wholesale and retail trade decreased by 106,000 (-2.9%), the largest drop since August 2018 (-123,000). Information and communication (-25,000, -2.9%) and associations, repair, and other personal services (-23,000, -1.9%) also saw declines in new employed persons.

On the other hand, due to the spread of the 'social distancing' campaign and increased use of delivery services, the number of new employed persons in transportation and warehousing increased by 99,000 (7.0%). Employment also increased in health and social welfare services (202,000, 9.7%) and agriculture, forestry, and fisheries (80,000, 7.1%).

Meanwhile, the total number of unemployed persons in February was 1,153,000, a decrease of 150,000 (-11.5%) compared to the same month last year. The unemployment rate fell by 0.6 percentage points to 4.1%.

This content was produced with the assistance of AI translation services.