Last Half of Last Year Sees 207,000 Decrease in Employment in Food and Bar Industry Due to 'COVID-19 Impact'

Statistics Korea Announces 'Characteristics of the 2020 Second Half Regional Employment Survey'
High-Quality Jobs in Finance, Manufacturing, Real Estate Predominantly Held by High-Income Groups

Three days before the Lunar New Year holiday, on February 8, a merchant is seen delivering food in the restaurant alley of Namdaemun Market, Seoul. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] In the second half of last year, the number of employees in face-to-face service industries such as restaurants and pubs decreased by more than 200,000 due to the impact of COVID-19. This directly reflected the effects of COVID-19 and also influenced the overall decline in employment. Industries considered as 'quality jobs' such as finance, manufacturing, and real estate were mostly occupied by high-income groups.

According to the 'Characteristics of Employed Persons by Industry and Occupation in the Second Half of 2020 Regional Employment Survey' released by Statistics Korea on the 21st, the number of employed persons in the 'restaurant and pub industry' decreased by 207,000 (-9.6%) in the second half of last year by industrial subcategory. Another face-to-face service industry, the education service sector, also saw a decrease of 103,000 (-5.5%), revealing that it was hit hard by COVID-19. Looking at the industrial sub-subcategory, the restaurant industry saw the largest decline with 179,000 fewer employees (-10.4%).

By age group, among youth aged 15-29, the largest number of workers were employed in the restaurant and pub industry (519,000). Considering the sharp decline in employment in this sector, it is interpreted that part-time workers (part-timers) in face-to-face industries were directly impacted by COVID-19. Those aged 30-49 were mostly employed in the education service sector (946,000), which also saw a decrease in employment. Those aged 50 and above were mostly employed in agriculture (1,308,000).

Regarding wage level proportions, 10.6% earned less than 1 million KRW, 21.9% earned between 1 million and less than 2 million KRW, 32.4% earned between 2 million and less than 3 million KRW, 17.2% earned between 3 million and less than 4 million KRW, and 17.9% earned 4 million KRW or more. The proportion of wage workers earning 2 million KRW or more per month was 67.5%, up 0.7 percentage points compared to the same period last year. This is interpreted as labor cost increases, including minimum wage hikes, influencing the results even amid COVID-19.

By major industry category and wage level, the proportion of wage workers earning less than 1 million KRW was highest in accommodation and food service (27.9%), 1 million to less than 2 million KRW in agriculture, forestry, and fisheries (40.3%), 2 million to less than 3 million KRW in real estate (39.4%), 3 million to less than 4 million KRW in manufacturing (24.1%), and 4 million KRW or more in finance and insurance (39.8%). Low-income groups worked in face-to-face service industries and agriculture/fisheries, while as income levels rose, employment shifted to real estate, manufacturing, finance, and insurance. The notion that so-called 'quality jobs' are exclusive to high-income groups is reflected in these figures.

By gender, male employees were most numerous in 'management-related clerical workers' (1,528,000), 'automobile drivers' (946,000), and 'store sales workers' (801,000). Female employees were most numerous in 'store sales workers' (960,000), 'cleaners and janitors' (754,000), and 'management-related clerical workers' (733,000).

Looking at occupational characteristics, male employees were most numerous in 'management and accounting clerical workers' (1,994,000), 'drivers and transportation workers' (1,227,000), and 'skilled agricultural and livestock workers' (862,000). Female employees were most numerous in 'management and accounting clerical workers' (1,897,000), 'health, social welfare, and religious workers' (1,107,000), and 'cooking and food service workers' (1,003,000).

Regarding employment status and major occupational categories, regular wage workers were highest in 'manufacturing' (24.0%), 'health and social welfare services' (11.0%), and 'wholesale and retail trade' (10.8%). Temporary and daily workers were highest in 'construction' (14.1%), 'accommodation and food service' (12.5%), and 'health and social welfare services' (12.0%). Non-wage workers were highest in 'agriculture, forestry, and fisheries' (21.8%), 'wholesale and retail trade' (19.5%), and 'accommodation and food service' (12.4%).

Source: Statistics Korea

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