KDI "Employment Contraction in Face-to-Face Service Industry Due to COVID-19"

KDI to Announce 'Economic Trends' on the 9th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Korea Development Institute (KDI) diagnosed that "recently, our economy has shown a high increase in domestic and foreign goods demand, but economic sluggishness continues as employment is rapidly contracting."

On the 9th, KDI stated in the 'Economic Trends' report, "The economy is sluggish, with employment rapidly contracting mainly in face-to-face service industries."

KDI judged that the possibility of a sharp economic contraction in the short term is low due to the easing of quarantine measures since mid-February. It added, "Consumption has continued to decline due to the contraction of face-to-face service industries, but as the spread of COVID-19 weakens, the consumption slump is expected to somewhat ease."

Employment in the service sector worsened significantly due to the resurgence of COVID-19. The number of employed persons in January decreased by 982,000 compared to the same month last year, expanding the decline from the previous month (-628,000).

Consumer prices rose somewhat due to a sharp increase in prices of agricultural, livestock, and fishery products. In February, consumer prices recorded a 1.1% increase, higher than the previous month (0.6%), as prices of agricultural, livestock, and fishery products surged amid the continued rise in international oil prices.

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