Due to the Impact of COVID-19, Hiring Shrinks... Worknet Job Openings Down 24.5% in March

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The demand for labor by companies in the domestic labor market has significantly contracted due to the impact of the novel coronavirus infection (COVID-19).

According to the Korea Employment Information Service on the 3rd, the number of new job openings by companies through the public employment support portal 'Worknet' in March was 144,886, a decrease of 24.5% (46,982) compared to the same month last year.

The COVID-19 outbreak is analyzed to have influenced the sharp decline in job openings in March. Due to management difficulties and uncertainties caused by the COVID-19 situation, companies are consecutively suspending or postponing hiring.

The number of new job seekers was 381,980, an increase of 0.4% (1,626) compared to the same month last year. There is little change in the labor supply side of the labor market, but demand has sharply decreased.

As a result of the decrease in job openings, new employment through Worknet in March also decreased by 24.3% (43,226) to 134,368 compared to the same month last year.

Looking at the scale of job openings by industry in March, the accommodation and food service industry decreased by 3,110 (54.1%). The education service industry, including private academies, decreased by 1,896 (42.0%), and wholesale and retail trade decreased by 3,543 (28.6%). These industries were hit hard due to the avoidance of face-to-face contact and the implementation of social distancing amid the spread of COVID-19.

The manufacturing industry also saw a decrease of 18,677 (25.7%) in job openings. Even in manufacturing, the backbone of the industry, labor demand has significantly contracted.

By region, Daegu and Gyeongbuk saw new job openings decrease by 2,465 (34.4%) and 3,124 (30.7%), respectively. Seoul decreased by 6,361 (28.0%), and Gyeonggi by 14,872 (25.3%).

Kim Jun-young, head of the Employment Trend Analysis Team at the Korea Employment Information Service, said, "The sharp decline in job openings in March appears to be mainly affected by the economic contraction caused by the COVID-19 outbreak," adding, "Job openings noticeably decreased, especially in face-to-face service industries."

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