February Business Workers -170,000, Wages -5.2%... Accommodation and Food Services Still in 'Recession Swamp'

Ministry of Employment Announces February Business Workforce Survey
Decrease in Decline Compared to -334,000 in December and -351,000 in January
Permanent Employees Down by 218,000... Food and Accommodation Face-to-Face Sectors Hit

On the 28th, as strict social distancing measures continue due to the increase in COVID-19 cases, the restaurant street in Jongno 2-ga, Seoul, is showing a quiet scene, reflecting the deepening difficulties faced by self-employed business owners. Photo by Jinhyung Kang aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] The decrease in employment last month was smaller than in January, which recorded the largest monthly decline during the third wave of COVID-19. However, the decline in regular workers, considered relatively stable jobs, and workers in face-to-face industries such as food and accommodation remained significant. The total wage per worker also decreased by more than 5%.

According to the "February Business Labor Survey" released by the Ministry of Employment and Labor on the 30th, the number of workers employed at businesses with one or more employees as of the last business day of last month was 18.319 million, down 170,000 (0.9%) from 18.488 million in the same month last year. This decline was smaller than the 334,000 decrease in December last year, during the third wave of COVID-19, and the 351,000 decrease in the previous month.

Kim Young-jung, Director of Employment Policy at the Ministry of Employment and Labor, explained, "The easing of social distancing, the base effect compared to the same month last year, and the implementation of fiscal support job projects seem to have influenced this. Considering the start of vaccinations, the domestic quarantine situation, and the continued improvement in exports, the employment situation is expected to continue improving in March."

However, the number of regular workers decreased by 218,000 (-1.4%) compared to the same month last year. Although the decline was smaller than the record highs of -267,000 in December last year and -303,000 in January, it still exceeded 200,000. Temporary and daily workers increased by 65,000 (3.8%).

Other workers, including special employment types (such as private tutors and door-to-door salespeople), decreased by 16,000 (-1.4%) last month. This decline was smaller than the -58,000 in December last year and -22,000 in January. Other jobs typically see a sharp drop in January because government public job projects end at the end of the year. Therefore, the reduced decline in February is not considered highly significant.

Workers at small and medium-sized enterprises suffered more than those at large companies. Regular workers at companies with 300 or more employees increased by 20,000 (0.7%) compared to the same month last year, but those at companies with fewer than 300 employees decreased by 190,000 (-1.2%).

By industry, face-to-face sectors such as food and accommodation were hit hard. Workers in food and accommodation decreased by 162,000 (-13.4%) compared to the same month last year. Although this decline was smaller than the record decreases of -226,000 in December last year and -240,000 in January, it remained significant. Manufacturing decreased by 68,000 (-1.8%), business facility management, business support, and rental services including manpower supply decreased by 56,000 (-4.9%), and wholesale and retail trade decreased by 42,000 (-1.8%).

In January, the total wage per worker at businesses with one or more regular employees was 3,877,000 KRW, down 215,000 KRW (-5.2%) compared to the same month last year. The wage for regular workers was 4,087,000 KRW, a decrease of 253,000 KRW (-5.8%), while temporary and daily workers earned 1,714,000 KRW, an increase of 96,000 KRW (5.9%). A Ministry of Employment and Labor official explained, "The total wage for regular workers decreased compared to the same month last year due to a base effect from holiday bonuses, while the total wage for temporary and daily workers increased because workers in relatively low-wage industries decreased due to COVID-19 and other factors." The real average monthly wage in January, adjusted for inflation, was 3,642,000 KRW per worker, down 5.9% from the same period last year.

The average monthly working hours per worker in January were 157.3 hours, down 0.3 hours (0.2%) compared to the same month last year. The number of working days in the calendar year was the same as the previous year at 20 days. Regular workers worked 162.8 hours per person, a decrease of 0.8 hours (-0.5%), while temporary and daily workers worked 2.3 hours (2.3%) more.

Meanwhile, the Ministry of Employment and Labor announced on the 25th that it would quickly execute the supplementary budget passed by the National Assembly. It plans to provide livelihood income stabilization support of about 570 billion KRW to 980,000 vulnerable workers and invest 2.5 trillion KRW in urgent employment measures including employment retention, job creation, employment support, care, and livelihood stabilization. Director Kim emphasized, "We will quickly execute the supplementary budget to create a definite opportunity for employment recovery and ensure meticulous and prompt execution so that support reaches the most needed places at the right time."

The Business Labor Survey is conducted to understand the total number of workers within businesses and the total wages of workers. Subcontracted workers without fixed workplaces in the construction industry and domestic service workers employed in households are excluded.

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