Not the Time for This... The Government Saying "Thank Goodness"

Deputy Prime Minister Hong's Meeting with Relevant Ministers
Self-Assessment of Job Market Recovery Signs

[Image source=Yonhap News]

[Asia Economy Reporter Kwangho Lee] On the 10th, the government expressed concern over the continuous decline in employment for three consecutive months, as announced by Statistics Korea in the 'May Employment Trends,' but also self-assessed that economic activity and job conditions are showing signs of recovery, with the decrease in employed persons easing mainly in service sector jobs. However, there are criticisms that the government's employment measures, mostly focused on short-term direct public jobs, require urgent fundamental solutions.

On the same day, the government held a meeting of related ministers (Green Room Meeting) chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki at the Government Complex Sejong to review and discuss the employment market situation and made the above statement.

Regarding the employment trends announced by Statistics Korea that day, the government explained, "Participants expressed concern that employment decline compared to the same month last year has continued for three consecutive months, but fortunately evaluated that economic activity and job conditions are beginning to show signs of recovery, such as the easing of the decrease centered on service sector jobs (increase in non-employed persons compared to the previous month)." They added, "This was attributed to the transition to social distancing in daily life at the beginning of last month, the effects of economic crisis policy responses to COVID-19 including consumption coupons and emergency disaster relief funds, and the overall recovery of consumer sentiment."

The number of employed persons in May was 26.93 million, a decrease of 392,000 compared to one year ago. Although this level did not exceed the decrease in April, it marked a negative figure for three consecutive months following March and April. Nevertheless, the government placed more emphasis on the slowdown in the decrease of employed persons.

According to the employment trends that day, manufacturing, considered a quality job sector, decreased, while jobs created through government fiscal spending (health and social welfare, public administration) increased. The expansion of short-term part-time jobs and short-term jobs for the elderly are jobs that disappear into thin air if fiscal spending is reduced. Nonetheless, government measures still focus on expanding short-term jobs. The government emphasized that "it plans to fully devote efforts to job creation through the Korean New Deal announced in the second half economic policy direction (Ha-gyeong-jeong), universal employment insurance, and strengthening employment safety nets such as the National Employment Support System."

Deputy Prime Minister Hong said on his Facebook that "employment in sectors with a high proportion of face-to-face work, such as accommodation and food services and education, which were most affected by COVID-19 shocks, is gradually recovering," but also mentioned that "it is difficult to predict how the employment situation will develop in the future."

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