Overall Employment Increased After 13 Months... But Employment Rate for '3040' Worsens (Comprehensive)

Statistics Korea Announces March Employment Trends

[Sejong=Asia Economy reporters Son Seon-hee and Moon Chae-seok] Last month, the total number of employed persons turned to an upward trend for the first time in 13 months. After more than a year of negative growth due to the COVID-19 pandemic since February last year, this marks the first rebound. However, the base effect from the severe employment shock that occurred in March last year is significant, and since the employment rates of the core age groups in the labor market?those in their 30s and 40s?still declined, it is premature to consider the employment market to be in a recovery phase.

According to the 'March Employment Trends' released by Statistics Korea on the 14th, the number of employed persons last month was 26.923 million, an increase of 314,000 compared to the same month last year. The employment rate for those aged 15 and over was 59.8%, also a slight rise of 0.3 percentage points over the same period.

As the total economically active population increased, the number of unemployed also rose. Last month, the number of unemployed was 1.215 million, up 36,000 from the same month last year. The unemployment rate rose by 0.1 percentage points to 4.3%. The simultaneous increase in both employed and unemployed indicates that a large number of people who had been out of the job-seeking market have re-entered it. In this regard, the economically inactive population showed a decline for the first time in 13 months.

However, looking at the details, it is still difficult to see this as a recovery trend. By industry, the increase in public sector jobs was prominent, and by age group, the 30s and 40s, which have high employment, showed sluggishness. By industry, employment increased significantly in health and social welfare services (171,000), which have many public jobs, and in public administration, defense, and social security administration (94,000). On the other hand, employment decreased in wholesale and retail trade (-168,000) and accommodation and food services (-28,000).

Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, said, "The easing of social distancing measures and the base effect from the employment shock in March 2019 contributed to the slight increase in employed and unemployed persons and the decrease in the economically inactive population," adding, "It is difficult to definitively say (that the employment market is recovering), but there seems to be some likelihood."

The employment rates of the 30s and 40s, the backbone of the economy, showed negative figures. The employment rate for those aged 30-39 fell by 0.8 percentage points compared to the same month last year, and for those aged 40-49, it also dropped by 0.4 percentage points. Director Jung explained, "While employment rates increased in other age groups, they decreased in the 30s and 40s, but the decline has somewhat narrowed. The decrease in the 30s was mainly in manufacturing, and in the 40s, it was centered on wholesale and retail trade and accommodation and food services."

The population categorized as 'not seeking work' also continues to increase. As of last month, the 'not seeking work' population was 2.436 million, up 70,000 from the same month last year. During the same period, the number of discouraged job seekers also rose by 102,000 to 684,000. Professor Geum Jae-ho of Korea University of Technology and Education pointed out, "It is premature to consider this indicator as a 'recovery.' To judge that employment has recovered, jobs for youth and the main economic activity groups in their 30s and 40s must increase." He added, "The increase in job seekers can also be seen not as a rise in jobs but as an increase in livelihood-driven job seeking after prolonged economic downturn, which is difficult to discern from data alone," and emphasized, "At least the trend should be observed for about the next three months."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), is presiding over a ministerial meeting (Green Room meeting) on April 14 at the Government Seoul Office, focusing on the 'March 2021 Employment Trends.' 2021.4.14 [Photo by Yonhap News]

The government is encouraged by the increase in the number of employed persons after a long period. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a meeting with related ministers (Green Room meeting) at the Government Seoul Office in the morning and said, "We will focus policy efforts to ensure that the recent recovery continues and expands centered on private sector jobs." Based on this employment indicator, the government defined the situation as a 'recovery.' He also expressed confidence through his social media, stating, "Employment improvement will continue after April."

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