"When Will I Get a Job?" Despite Social Distancing Easing, Job Seekers Still Sigh

7 out of 10 Companies "No Hiring Plans for Second Half"
Expected Employment Rate This Year 44.5%... Hankyung Research Institute "Pessimistic Outlook"
Experts "Youth Perceived Unemployment Rate at Record High... Need Measures to Revitalize Companies"

A view of a university library in Seoul / Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] "I don't think I will get a job," "I've submitted dozens of applications."

As social distancing measures have been eased to level 1, expectations are growing that the job market will pick up in the second half of the year. However, companies have yet to expand their hiring plans, leaving job seekers still sighing in frustration.

Companies are trending toward reducing hiring by selecting interns instead of new employees or cutting down the number of open recruitment positions. Some have not conducted any new hiring at all. Experts emphasize that corporate economic vitality should lead to employment stability and that related policies need to be established.

According to the Korea Economic Research Institute (KERI) under the Federation of Korean Industries last month, a survey on 'New Hiring Plans for the Second Half of 2020' targeting the top 500 companies by sales found that 74.2% of companies responded that they either had no hiring plans or had not established any new hiring plans. The main reason cited by these companies for not increasing new college graduate hiring was "deterioration of domestic and international economic and industry conditions due to the impact of COVID-19" (69.8%).

As a result, job seekers are expressing stress due to the higher barriers to employment. They voiced anxiety about an uncertain future and a sense of crisis caused by the employment cliff. There are concerns that prolonged job searching while unemployed could make finding a job even more difficult or lead to financial hardship.

A (24), who graduated from university in February and is currently job hunting, said, "I've been unemployed for almost a year," adding, "Since job postings have decreased, I have submitted dozens of applications indiscriminately to large corporations, small and medium enterprises, and small businesses alike. Yet, I still haven't found a job."

A said, "For now, I cover my living expenses with part-time jobs, but I can't live like this forever," adding, "I feel completely lost and exhausted wondering if I will ever be able to get a job. I'm scared that this situation will repeat next year."

Recruitment-related footage/Photo by Yonhap News

B (26), a job seeker who graduated last August, expressed distress, saying, "I saw an article saying 'Self-employed people breathed a sigh of relief as distancing was eased to level 1.' Of course, that's fortunate, but people like me in the job market are still under stress."

B said, "If the situation keeps improving and the corporate economy recovers, naturally the doors to employment will widen, but since the resurgence has repeated before, it's hard for me to hold onto such hope," adding, "Almost none of my friends have found jobs this year. Given this situation, I think the government should step in and prepare measures to secure jobs."

There is also an analysis that more than half of university students graduating this year will not find employment due to the impact of COVID-19.

On the 4th, KERI conducted a 'University Student Employment Perception Survey' targeting 4,158 students and graduates from four-year universities nationwide. The expected employment rate averaged 44.5%. Additionally, 75.5% of university students responded that "the environment for new college graduate hiring has become more difficult than last year." This figure increased by 29.4 percentage points compared to the previous year.

KERI pointed out that this is a pessimistic outlook considering that the actual employment rate of graduates over the past five years since 2014 was around 62.6?64.5%.

Choo Kwang-ho, Director of Economic Policy at KERI, said, "The vitality of companies, which are the main agents of job creation, has rapidly declined recently," and suggested, "National efforts should be concentrated on deregulation, securing employment flexibility, and expanding companies' capacity to hire."

Experts recommend that policies should be prepared not only to maintain employment but also to expand it.

Professor Kim Tae-gi of Dankook University's Department of Economics said, "Since the expanded unemployment rate has reached its highest level since 2015, the perceived unemployment rate among youth is rising, increasing the stress and suffering of job seekers," adding, "Companies are currently canceling or reducing their hiring schedules."

Professor Kim advised, "To increase hiring, companies need to have the vitality to expand investment and hiring scales. The government needs to introduce related policies."

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