Domestic Companies' Hiring Plans for Q2-Q3 Hit 11-Year Low...Only 238,000 Jobs Expected

On the 19th, the government strengthened social distancing measures in the metropolitan area to curb the explosive spread of the novel coronavirus infection (COVID-19). Gatherings and events with more than 50 people indoors and more than 100 people outdoors are, in principle, prohibited until the 30th of this month. Private gatherings such as exhibitions, public hearings, commemorative ceremonies, recruitment exams, weddings, alumni meetings, 60th birthday parties, funerals, and first birthday parties cannot be held with many people present. Twelve types of high-risk facilities will be closed. These facilities include clubs, room salons, and other entertainment bars, colatecs, danran bars, emotional bars, hunting pochas, karaoke rooms, indoor standing concert halls, indoor group exercise (intense GX types), buffets (including those in wedding halls), PC rooms, direct sales promotion centers, and large academies (with 300 or more people). On this day, a cat is cooling off in the shade on the quiet Jonggak Youth Street in Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Seungjin Lee] Due to the impact of the novel coronavirus infection (COVID-19), the number of planned hires by domestic companies has fallen to the lowest level in 11 years.

According to the "2020 First Half Workforce Survey by Occupation" released by the Ministry of Employment and Labor on the 31st, as of the first quarter of this year, the planned number of hires for the 2nd to 3rd quarters (April to September) at domestic workplaces with five or more regular employees was 238,000, a decrease of 13,000 (5.1%) compared to the same period last year.

This is the smallest scale since the first quarter of 2009 (208,000) during the global financial crisis, indicating that many companies have decided to halt or reduce hiring due to increased economic uncertainty.

The Workforce Survey by Occupation investigates companies' job openings and hiring numbers to alleviate labor mismatches (supply and demand discrepancies), targeting a sample of about 32,000 workplaces with five or more regular employees.

The number of job openings at workplaces with five or more employees in the first quarter (January to March) this year was 793,000, a decrease of 32,000 (3.9%) compared to the same period last year. The number of hires was 734,000, down by 14,000 (1.9%).

The Ministry of Employment and Labor analyzed that this was due to the effects of delayed school openings, academy closures, decreased tourists, and social distancing measures amid the spread of COVID-19.

The number of "unfilled positions," meaning those actively sought by workplaces but not hired, was 59,000, a sharp decrease of 17,000 (22.7%) compared to the same period last year.

The "shortage number," referring to additional personnel needed for normal operation of workplaces as of April 1, was 223,000, down by 12,000 (5.1%) compared to the same period last year.

On the other hand, monthly employment indicators continued to improve. According to the July Workforce Survey results released by the Ministry on the same day, as of the last business day of last month, the total number of employees at workplaces with one or more employees was 18,446,000, a decrease of 138,000 (0.7%) compared to the same month last year.

The number of employees at workplaces with one or more employees turned negative in March when the COVID-19 crisis intensified, with the decrease expanding to 365,000 in April, but the decline narrowed for three consecutive months from May. This is attributed to emergency disaster relief payments, school reopening, and the resumption of government-funded job projects.

However, with the explosive increase in COVID-19 cases following the Liberation Day rallies, employment indicators are likely to worsen again from August.

The Workforce Survey targets domestic workplaces with fixed business locations, excluding agriculture and others, and does not include workers employed by subcontractors without fixed business locations in construction or those in household service industries. Additionally, planned hiring numbers are merely company plans and actual hires may vary depending on economic fluctuations.

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