Even the resilient senior jobs... 'All-age employment' declined for the first time in 22 years since the IMF crisis

January 2021 Employment Trends... 'Perceived Unemployment Rate' Soars to 16.8%, Highest Since Statistics Began

[Sejong=Asia Economy reporters Son Seon-hee and Jang Se-hee] The nearly one million decrease in the number of employed people last month was due not only to the youth but also to the elderly employment, which had served as a numerical pillar until now, turning to a downward trend. The decline in employment among those aged 60 and over compared to the same month last year is the first in 12 years since a decrease of 40,000 in February 2010, and the simultaneous decrease across all age groups is the first in 22 years since December 1998. The 'employment shock' caused by the COVID-19 crisis has triggered widespread repercussions.

As social distancing and other quarantine measures continued due to the COVID-19 crisis, face-to-face service industries such as accommodation and food services suffered significant employment damage. The number of unemployed reached 1.57 million, the highest since statistics began in June 1999.

With various employment indicators reverting to levels before the Moon Jae-in administration, the slogan of a 'job government' has become meaningless. The Blue House has no separate position on the specific results but briefly stated, "We will make efforts for COVID-19 vulnerable groups."

◆Elderly Jobs Turn to Decline for the First Time in 12 Years= The most notable point in the 'January 2021 Employment Trends' released on the 10th is the decrease in employment among those aged 60 and over. Last month, the number of employed people aged 60 and over was recorded at 4,483,000, down 15,000 from 4,497,000 in the same month last year. Unlike other age groups that fluctuated seasonally, elderly jobs had maintained a steady increase despite the COVID-19 crisis. However, it turned to a decrease for the first time in 12 years since February 2010 (-40,000).

The decrease in elderly employment is related to the reduction of public jobs. Due to COVID-19, going out has been restrained, making it difficult to find small jobs.

Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, explained at a briefing that day, "The decrease in employment among those aged 60 and over appears to be mainly due to reductions in public administration and health and welfare sectors," adding, "After the year-end termination of the elderly job project, the population waiting in the economically inactive group increased, resulting in an overall expansion of the 'resting' population."

As the third wave of COVID-19 progressed, the decrease in the youth population (aged 15-29) also peaked last month since the second half of last year. The number of employed people decreased by 30,000 in July last year (compared to the same month the previous year), and the decline steadily expanded every month, reaching 314,000 last month, driving the total employment decrease (982,000). In particular, the number of unemployed with high academic credentials who could not find jobs was recorded at 123,000 last January. It is also very unusual for the number of unemployed with 'college graduate or higher' to reach the 100,000 level.

Although included in the employment count, the population in a 'temporary leave' status increased by 346,000 to 892,000. The number of short-term job holders (working 1-17 hours per week) increased by 71,000, while regular workers (working 53 hours or more per week) decreased by 874,000.

◆379,000 "Just Rested"= Last month, the economically inactive population increased by 867,000 to 17.58 million. This is not only the largest increase since statistics began in 1999 but also the highest absolute number ever recorded. Among them, the 'resting' population also increased by 379,000 to 2.715 million, setting a new record since statistics began in 2003. The number of discouraged job seekers rose by 233,000 to 775,000, the largest increase since January 2015 (253,000 increase).

Even those currently economically active feel effectively unemployed, with the expanded unemployment rate (U6 unemployment rate) reaching 16.8%, the highest for the same month since statistics began in 2015. Director Jung analyzed, "After the social distancing level was raised, the increase in the 'resting' population has expanded."

Professor Lee In-ho of Seoul National University’s Department of Economics commented on the decrease in employment across all age groups, including those aged 60 and over (-15,000), saying, "It appears that even the elderly job provision, which the government supported financially, has shrunk due to the impact of COVID-19," adding, "If artificially created jobs are withdrawn, the decrease in employment numbers will be even greater." He continued, "Even if some industries like exports improve, if the recovery in service sectors such as retail is slow, employment will inevitably become more difficult," and criticized, "The Moon Jae-in administration proclaimed itself a job government at its inception, but it is hard to say it did well."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), is presiding over a meeting of related ministers held at the Government Seoul Office in Gwanghwamun, Seoul, on the 10th. Lee Ho-seung, Senior Secretary for Economic Affairs to the President (second from left), and Lee Jae-gap, Minister of Employment and Labor (fourth from left), attended the meeting. February 10, 2021. Photo by Yonhap News.

◆Hong Nam-ki Chairs Consecutive Green Room Meetings= The government, faced with the worst employment indicators, is in a state of shock. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a ministerial meeting (Green Room meeting) that morning to assess the employment market situation and discuss response directions. The day before, he also held a Green Room meeting related to real estate policy, making the consecutive meetings very unusual. This shows how seriously the government is taking the employment indicators.

As the employment crisis caused by COVID-19 deepened, the government plans to create '900,000+α' direct jobs in the first quarter through cooperation between the central government and local governments. Deputy Prime Minister Hong stated, "We will create 900,000+α direct jobs through cooperation between the central government and local governments in the first quarter," adding, "We will continue efforts to strengthen the foundation for creating quality private sector jobs through regulatory innovation and the Korean New Deal."

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