The Employment Shock from COVID-19 Was Greater in Major Cities

Statistics Korea, Results of the 2020 First Half Regional Employment Survey 'Key Employment Indicators by Si/Gun' Aggregation

Employment Rate in Urban Areas Down 2.0%P and Rural Areas Down 0.9%P in the First Half of the Year
Number of Employed in Urban Areas -276,000; Rural Areas -45,000

[Sejong=Asia Economy Reporter Jusangdon] The decline in employment rates due to the impact of the novel coronavirus disease (COVID-19) was found to be greater in urban areas than in rural areas. In particular, the youth, who have a high proportion of employment in face-to-face service industries, were more severely affected.

According to the "Key Employment Indicators by City and County" from the 2020 first half regional employment survey released by Statistics Korea on the 25th, the employment rate in urban areas of nine provinces as of April was 58.3%, down 2.0 percentage points compared to the same period last year. The employment rate in rural areas was 65.9%, down 0.9 percentage points.

Statistics Korea explained that the reason the employment rate in rural areas is higher than in urban areas is because the proportion of agriculture, forestry, and fisheries is relatively higher in rural areas, and among the employed, the proportion of elderly and women is larger.

The scale of the decrease in the number of employed was also larger in urban areas. The number of employed in urban areas was 12,668,000, down 276,000 (-2.1%) compared to the same period last year, while in rural areas it was 2,039,000, down 45,000 (-2.1%).

An official from Statistics Korea said, "April employment was at its lowest point, and the unemployment rate reflected delays in hiring and interviews, which was directly reflected," adding, "Due to COVID-19, employment stagnation appeared mainly among the youth in urban areas and face-to-face service sectors."

In fact, the number of employed youth in urban areas in the first half was 1,643,000, down 151,000 (-8.4%) compared to the same period last year, and in rural areas, it was 152,000, down 21,000 (-12.2%).

The unemployment rate in urban areas of the nine provinces was 3.6%, down 0.2 percentage points from the same period last year. The rural areas remained at 1.5%, unchanged from the previous year. The number of unemployed in urban areas was 475,000, down 32,000 (-6.4%) compared to the same period last year, and in rural areas, it was 32,000, down 1,000 (-1.6%).

The reason for the decrease in the unemployment rate is the increase in the non-economically active population, which is not reflected in unemployment statistics. The economically active population decreased by 308,000 (-2.3%) in urban areas and 45,000 (-2.1%) in rural areas compared to the same period last year. Meanwhile, the non-economically active population increased by 581,000 (7.2%) in urban areas and 17,000 (1.6%) in rural areas.

The employment rate in urban areas was high in Seogwipo City (69.4%), followed by Dangjin City (68.1%) and Seosan City (66.5%), and low in Dongducheon City (50.9%), Gwacheon City (51.4%), and Namyangju City (52.9%).

The employment rate in rural areas was high in Ulleung County (81.7%), Jangsu County (79.6%), and Sinan County (76.6%), and low in Yangpyeong County (57.8%), Jeungpyeong County (58.7%), and Chilgok County (59.1%).

The unemployment rate was high in urban areas such as Osan City (5.4%), Gumi City (5.4%), and Guri City (5.3%). In rural areas, it was high in Jeungpyeong County (4.4%), Goseong County (3.8%), and Jincheon County, Chungcheongbuk-do (3.5%).

The proportion of those 'enrolled in school or preparing for further education' was high in Muan County (33.0%), Gyeongsan City (32.0%), and Wanju County (31.9%). The proportion of 'elderly' was high in Seocheon County (47.7%), Buyeo County (43.5%), and Imsil County (39.3%). The proportion of 'childcare and housework' was high in Ulleung County (59.5%), Uiseong County (55.8%), and Dangjin City (55.4%).

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