[Economic Outlook] May Employment Report... How Long Will the Corona Nightmare Last?

April Employment Figures Worst Since February 1999, Post-Asian Financial Crisis

On the 13th, citizens are waiting to receive consultations for unemployment benefits applications and employment support at the Seoul Employment Welfare Plus Center in Jung-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] Attention is focused on last month's employment figures to be released next week. It will reveal how much of a shock the novel coronavirus infection (COVID-19) has dealt to employment in Korea. National tax revenue up to April, this month's economic trends, and last month's financial market trends will also be announced.

The Statistics Korea will release the 'May Employment Trends' report on the 10th. In April, the employment shock intensified due to the spread of COVID-19. The number of employed people decreased by 476,000. This was the largest decline since February 1999, right after the foreign exchange crisis, when it dropped by 658,000.

The number of temporarily furloughed workers increased by 318.8% (1.13 million) to 1.485 million. Although this is slightly lower than the record high of 1.607 million in March, it remained above one million for two consecutive months. Temporarily furloughed workers refer to those who have a job but are not working.

The Ministry of Economy and Finance will announce national tax revenue and fiscal balance for January to April through the 'Monthly Fiscal Trends June Issue' on the 9th. National tax revenue from January to March was 69.5 trillion won, down 8.5 trillion won compared to a year earlier. Considering that national tax revenue was 2.4 trillion won less in January and February compared to the previous year, about 6 trillion won less was collected in March alone.

The Ministry of Economy and Finance will publish the June issue of the Recent Economic Trends (Green Book) on the 12th. Last month's Green Book stated, "Due to the impact of COVID-19, domestic demand contraction continues to cause poor employment indicators, and the decline in exports is increasing, expanding downside risks to the real economy." Last month's card approval amount decreased by 5.7% compared to a year earlier. Following March (-4.3%), which turned negative for the first time in two years and five months, it declined for two consecutive months.

The Bank of Korea will announce the 'May Financial Market Trends' on the 11th. In April, corporate loans in the banking sector increased by 27.9 trillion won, the largest since statistics began being compiled in June 2009.

This was due to ultra-low interest loans for small business owners and financial support from policy financial institutions to small and medium-sized enterprises (SMEs) and mid-sized companies amid the COVID-19 crisis. Not only SMEs but also large corporations faced financial difficulties, leading to a decrease in demand for working capital loans.

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