Will Changwon-si Seongsan-gu Be Designated as an Employment Crisis Area?

Ministry of Labor Public-Private Joint Investigation Team Conducts On-Site Inspection

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] Changwon City in Gyeongnam announced on the 3rd that the Ministry of Employment and Labor's public-private joint investigation team conducted an on-site inspection regarding the designation of Seongsan-gu as an 'Employment Crisis Area.'

An 'Employment Crisis Area' is a region where government-wide job support measures are applied to stabilize employment due to significant deterioration or rapid decrease in employment caused by changes in economic conditions.

The city requested consultation for the designation of Seongsan-gu as an employment crisis area to the Changwon branch of the Busan Regional Employment and Labor Office on May 26.

Subsequently, on the 3rd of last month, the Gyeongnam Labor-Management-Civil Cooperation Council notified the city of the approval of the original proposal, and on the 6th of last month, the city submitted the final application to the Ministry of Employment and Labor.

Based on the application submitted by the city to the Ministry of Employment and Labor, the public-private joint investigation team reviewed the overall employment, industry, and economic status of the region and inquired about related matters.

According to the city, as of June, Seongsan-gu showed a 30.1% increase in new job seeker benefit applicants due to reasons such as 'business closure or bankruptcy' and 'personnel reduction due to management needs and company recession' over one year, which is more than double the national increase rate of 13.4%, indicating that most employment indicators worsened compared to the national average.

Additionally, according to the '2020 Q2 Changwon City Employment Trends' announced by the Changwon Chamber of Commerce and Industry, the proportion of retirees due to company recession in the Seongsan-gu area of Changwon was 34.2%, significantly higher than Uichang-gu (18.7%), Masanhappo-gu (22.7%), Masanhoewon-gu (19.0%), and Jinhae-gu (19.4%).

Jo Young-jin, the 1st Deputy Mayor of Changwon City, said, “Seongsan-gu, which has a high proportion of exports and manufacturing, has suffered significant damage in all sectors due to the impact of COVID-19. The chain restructuring of large enterprises is causing even greater pain to partner companies vulnerable to crises, so we strongly request the designation of Seongsan-gu as an employment crisis area.”

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