Employment Numbers Decline for 1 Year Since COVID-19 Spread...Longest Decrease Since IMF Financial Crisis (Comprehensive)

February Employment Decreased by 473,000 Compared to Last Year... Negative for 12 Consecutive Months
Deputy Prime Minister Hong Nam-ki: "Employment Market Difficulties Noticeably Eased Compared to January"

[Sejong=Asia Economy Reporters Kim Hyunjung and Jang Sehee] Due to the prolonged impact of the COVID-19 pandemic, the number of employed persons in February decreased by 473,000 compared to the previous year. This marks the 12th consecutive month of decline since March last year when COVID-19 began to spread, setting the longest record since the 1998 IMF financial crisis. Although the government has supplied public jobs and provided large-scale subsidies, these efforts have been insufficient to prevent the employment cliff.

According to the 'February Employment Trends' announced by Statistics Korea on the 17th, the number of employed persons last month was 26.365 million, down 473,000 from a year earlier. This marks the 12th consecutive month of decline since March last year when COVID-19 cases surged, the longest downward trend since the 16-month consecutive decline from January 1998 to April 1999.

However, due to the effects of strict social distancing, the base effect of last year's favorable employment, and the gap in public jobs during the year-end and New Year holidays, the decrease in employed persons was less severe than the 982,000 decline in January. Jung Dongmyung, Director of the Social Statistics Bureau at Statistics Korea, said, "The February employment survey period was from the 14th to the 21st, and on the 15th, social distancing was eased and public job projects began, so these influences were likely reflected in the employment trends."

◆Face-to-face industries remain sluggish... Employment decreased in all age groups except those in their 60s= By industry, employment decreased in accommodation and food services (-232,000), wholesale and retail trade (-194,000), and associations, repair, and other personal services (-84,000). On the other hand, health and social welfare services (91,000) and public administration, defense, and social security administration (38,000) sectors saw increases.

Employment decreased in all age groups except those aged 60 and over (212,000). The declines were 106,000 in their 20s, 238,000 in their 30s, 166,000 in their 40s, and 139,000 in their 50s. The employment rate for those aged 15 and over was 58.6%, down 1.4 percentage points from a year earlier. This is the lowest since May 2013 (57.5%) for the same month. The OECD comparison standard employment rate for ages 15-64 was 64.8%, down 1.5 percentage points. This is also the lowest for February since February 2014 (64.6%).

The unemployment rate rose to 4.9%, up 0.8 percentage points from a year earlier. The number of unemployed was 1.353 million, an increase of 201,000 compared to the same month last year.

◆Only solo self-employed increased, temporary leave reached a record high in February= By employment status, temporary workers (-317,000) and daily workers (-80,000) decreased, but the decline was less than in January (temporary workers -563,000, daily workers -232,000). Regular workers increased by 82,000.

Self-employed persons with employees decreased by 156,000, while solo self-employed without employees increased by 45,000. This includes those who initially dismissed employees and started working alone or those who started a one-person business.

Temporary leave workers, who are classified as employed in statistics but would be classified as 'unemployed' if they do not return to work after six months, numbered 698,000, an increase of 80,000 from the previous year. Although this is less than January's 892,000, it is the highest number recorded for February since statistics began in July 1982.

The economically inactive population was 17.269 million, an increase of 562,000 compared to the same month last year. The 'resting' population, who did not seek jobs without special reasons, increased by 216,000 from last year to 2.573 million. Among the economically inactive, those who gave up job seeking numbered 752,000, up 218,000 from a year earlier. The employment auxiliary indicator 3 (expanded unemployment rate), which includes employed persons who think they can work more, rose to 15.7%, up 3.5 percentage points from the previous year, marking the highest since statistics began in 2015.

[Image source=Yonhap News]

◆Expectations for improvement in March employment indicators: "Acceleration of supplementary budget and New Deal projects"= Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, noted that the decrease in the number of employed persons narrowed compared to January (982,000) and predicted that related indicators will show improvement next month. Deputy Prime Minister Hong said, "The difficulties in the employment market caused by the third wave of COVID-19 have noticeably eased. Considering the easing of social distancing, continued export improvement, and the base effect from last March's employment shock, employment indicators are expected to continue improving in March."

He added, "However, since the number of COVID-19 confirmed cases remains at the 300-400 range and the risk of infection persists, the government will maintain vigilance in quarantine and make every effort to improve the employment market and job situation more rapidly through policy measures. We will ensure that the supplementary budget, including the 'emergency employment measures' for 275,000 customized jobs, is promptly executed as soon as it is approved by the National Assembly." He also emphasized, "We will continue efforts to stabilize the employment market, such as extending special employment support sectors (8 sectors) and additionally designating 6 sectors. We will also accelerate support to strengthen the foundation for creating quality private sector jobs through the execution and discovery of 110 trillion won investment projects and the promotion of the Korean New Deal."

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