Business Operators Decrease for the First Time by 225,000... Direct Hit to Accommodation, Food Service, and Education Industries

Ministry of Employment Announces Results of 'March Establishment Labor Force Survey'

Amid the economic instability caused by the novel coronavirus infection, citizens visiting the Seoul Western Employment and Labor Office in Mapo-gu, Seoul, on the 19th are receiving consultations for unemployment benefit applications as the number of applications increases. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The number of workers employed at business establishments decreased by 225,000 compared to last year due to the impact of the novel coronavirus infection (COVID-19) last month. This is the first time since statistics began in 2009 that the number of workers at business establishments has declined. The accommodation and food service industry and the education service industry, which were directly hit by COVID-19, each saw a decrease of more than 100,000 workers.

According to the 'March Business Establishment Labor Survey' released by the Ministry of Employment and Labor on the 28th, as of the last business day of last month, the number of workers at establishments with one or more employees was 18,278,000, a decrease of 225,000 (-1.2%) compared to the same month last year.

An official from the Ministry of Employment and Labor stated, "Due to the impact of COVID-19 across industries, the number of workers decreased compared to the same month last year for the first time since the employment statistics began in June 2009," adding, "This appears to be due to social distancing, school reopening delays, and economic activity contraction."

By employment status, temporary and daily workers decreased by 124,000 (-7.0%), suffering the greatest job impact from COVID-19. Other workers decreased by 93,000 (-7.9%), and regular workers decreased by 8,000 (-0.1%).

Other workers refer to those who receive sales commissions based on tips or sales performance without a fixed salary, or those who work unpaid to acquire job skills. Regular workers refer to wage workers with employment contracts of one year or more and those working as full-time employees.

By industry, the accommodation and food service industry decreased by 153,000 (-12.0%) and the education service industry by 107,000 (-6.7%), showing the greatest impact from COVID-19.

Other industries included arts, sports, and leisure-related services (-39,000, -11.9%), business facility management, business support, and rental services (-38,000, -3.3%), and wholesale and retail trade (-34,000, -1.5%). Among all industries, manufacturing, which has the largest share of workers, decreased by 11,000 (-0.3%).

Due to the aftermath of COVID-19, the number of new hires decreased while the number of people losing jobs increased. The number of new hires last month was 1,039,000, a decrease of 127,000 (-10.9%) compared to the same month last year, while the number of job changes increased by 209,000 (20.9%) to 1,211,000.

In particular, the hiring of temporary and daily workers noticeably declined. Last month, the number of hires for regular positions was 440,000, down 13,000 (-2.9%), and for temporary and daily positions, it was 449,000, down 136,000 (-23.3%).

Regarding involuntary job changes such as contract termination and dismissal, regular workers numbered 187,000, an increase of 64,000 (51.9%) compared to the same month last year. Temporary and daily workers numbered 39,900, an increase of 11,000 (2.7%). By industry, involuntary job changes increased in the accommodation and food service industry (22,000) and business facility management, business support, and rental services (13,000).

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