Easing of Social Distancing... Will Job Seekers' Path to Employment Open?

[Asia Economy Reporter Yoon Shin-won] As the government announced that it will ease the high-intensity social distancing measures previously implemented to curb the spread of the novel coronavirus infection (COVID-19), there seems to be growing hope that the employment prospects for job seekers may reopen.

On the 19th, the government stated that as the increase in new COVID-19 cases slows down, social distancing will continue from the 20th to May 5th, but the level of enforcement will be lowered from "high-intensity" to a "relaxed form." The recommendation to "suspend operations" for the four major group facilities with high infection risks, such as religious, entertainment, indoor sports facilities, and academies, has been changed to a recommendation for "operation restrictions."

Various certification and language tests, as well as some recruitment exams, will also be conducted on a limited basis, provided that strict quarantine rules are followed. The YBM Korea TOEIC Committee canceled a total of four TOEIC tests from the end of February but plans to resume testing from April 26, and some certification and civil service exam schedules are expected to be set soon.

Until now, job seekers have found it difficult not only to get employed but even to prepare for employment due to the impact of COVID-19. Companies postponed or canceled hiring plans, and with various exams, libraries, and academies closing their doors, it was practically impossible to plan for building qualifications for employment.

According to the "March Employment Trends" released by Statistics Korea on the 17th, the number of employed persons last month was 26,609,000, a decrease of 195,000 compared to a year earlier. This is the largest drop in 10 years and 10 months since the 2009 global financial crisis. The employment auxiliary indicator 3 (expanded unemployment rate), which reflects the perceived unemployment rate, rose by 1.8 percentage points year-on-year to 14.4%, marking the highest level since statistics began in 2015.

Additionally, the "potential unemployed," or "discouraged non-economic active population," reached 2,366,000, an increase of 18.3% compared to the same period last year. This population consists of people who have the ability to work but are not working simply because they want to rest without specific reasons, marking the highest population and increase since statistics began in 2003. Among them, those in their 20s numbered 412,000, a 35.8% increase compared to the same period last year.

Kim Yong-beom, the first vice minister of the Ministry of Economy and Finance, commented on this, saying, "We need to pay close attention to the notable increase in the non-economic active population among those in their 20s and 30s," and analyzed, "Due to the nature of the health crisis, it seems that the phenomenon of job-seeking activities disappearing due to avoidance of face-to-face contact has overlapped with the sharp decline in new job openings."

Given this situation, some job seekers have become more hopeful about employment following the government's announcement of easing social distancing.

Job seeker Eun-mo (28) said, "After graduating from university, I was busy going to the library and academies every day and taking exams on weekends, but due to the COVID-19 situation, I couldn't do anything at home and felt helpless," adding, "I heard that exams will resume, and academies will open starting this week, so that's a relief."

However, the problem is that despite the easing of social distancing, general companies still feel burdened by hiring new employees due to the impact of COVID-19. In fact, a survey by the job portal Incruit targeting HR managers of 262 companies found that 2 out of 10 companies said they would not hire any new graduates this year. While 60.7% responded that they had hiring plans before the outbreak of COVID-19, only 21.1% said they would maintain hiring plans after COVID-19. The percentage of companies uncertain about hiring increased from 7% to 25.6%.

The recruitment period for new employees is also expected to become active only after the second half of the year. Regarding the timing of new graduate recruitment this year, 48.7% answered that they only expect it to be after September, indicating that job seekers' difficulties are likely to continue for the time being.

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