COVID-19 Driven 'Employment Shock'... Business Establishment Workers Decrease by 300,000 for Two Consecutive Months

Ministry of Employment Announces 'May Establishment Labor Force Survey' Results
Manufacturing Workers Decrease by 69,000... Decline Widens

Citizens are receiving 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 Kim Bo-kyung] Due to the employment shock caused by the novel coronavirus infection (COVID-19) crisis, the number of workers employed at domestic business establishments decreased by more than 300,000 for two consecutive months.

According to the May Business Establishment Labor Survey results announced by the Ministry of Employment and Labor on the 29th, as of the last business day of last month, the number of workers employed at domestic business establishments with one or more employees was 18,309,000, down 311,000 (1.7%) compared to the same month last year.

This marks a continued decrease in the 300,000 range following April's (-365,000). The number of workers employed at business establishments turned negative for the first time this year in March (-225,000).

The somewhat smaller decrease in the number of workers employed at business establishments last month compared to April is interpreted as a result of the gradual resumption of government job projects that had been suspended due to the spread of COVID-19.

Looking at the increase and decrease in workers employed at business establishments by industry last month, public administration, defense, and social security administration, including government job projects, increased by 50,000. The health and social welfare sector also increased by 85,000.

On the other hand, the accommodation and food service industry, which was hit hard by social distancing measures due to the spread of COVID-19, sharply decreased by 155,000 (12.1%), and the education service industry including private academies and the wholesale and retail trade industry decreased by 69,000 and 63,000 respectively.

However, the decrease in workers employed in the accommodation and food service industry and the education service industry was smaller than in April. A recovery trend appeared mainly in some service industries. This is attributed to the impact of last month's emergency disaster relief fund payments and school reopening.

The number of workers employed in the manufacturing industry, the backbone of the domestic industry, was 3,664,000, down 69,000 (1.8%) compared to the same month last year. The decrease widened following March (-11,000) and April (-56,000).

The reality of the employment shock spreading mainly among vulnerable groups such as temporary and daily workers, special-type workers, and workers at small businesses was also revealed.

By employment status, the number of regular workers decreased by 140,000 (0.9%), while temporary and daily workers decreased by 101,000 (5.5%). Other workers, including special-type workers (such as private tutors), also decreased by 69,000 (5.9%).

By business establishment size, establishments with 300 or more employees increased by 13,000 (0.4%), whereas establishments with fewer than 300 employees decreased by 323,000 (2.1%).

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