Employment Increased for Three Consecutive Months... But 75% Are Senior Jobs

May Employment Increased by 619,000... 60+ Age Group Rises, 'Employment Market Backbone' 30s Decline

[Sejong=Asia Economy reporters Son Seon-hee and Moon Chae-seok] Last month, the number of employed people increased by nearly 620,000, showing a recovery trend for three consecutive months. The economic recovery has also impacted employment. However, due to the significant base effect from the severe impact of the COVID-19 crisis last year, and with 75% of the increased jobs concentrated among those aged 60 and over, it is premature to consider this a balanced recovery.

According to the 'May Employment Trends' released by Statistics Korea on the 9th, the total number of employed people last month was 27.55 million, an increase of 619,000 compared to the same month last year. Since rebounding in March, employment has increased for three consecutive months, and following April's increase of 652,000, it recorded an increase of over 600,000 for two consecutive months.

The employment rate for those aged 15 to 64 (based on OECD comparison standards) was 66.9%, up 1.1 percentage points from the same month last year. The unemployment rate fell by 0.5 percentage points to 4.0%.

Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, explained at the briefing that "the positive export performance, expanded consumption, maintenance of social distancing levels, and base effects were reflected."

However, looking into the details, it is difficult to say that quality jobs have increased. About 74% (455,000) of the increase in employed people last month were aged 60 or older. The core working-age group in the labor market, those in their 30s, actually decreased by 69,000, and those in their 40s also decreased by 6,000. Among the population aged 15 to 59, excluding the elderly, the only age group that saw an increase in those who did not seek work despite being able to work?the 'resting' population?was those in their 30s, increasing by 33,000. Statistics Korea suggested that the increase in employment rates across all age groups and the decrease in employment among those in their 30s and 40s were also influenced by demographic structural factors.

The employment rate for youth (aged 15 to 29) was 44.4%, rising 2.2 percentage points during the same period. This is the highest figure in 16 years since May 2005 (45.5%) when compared for the same month.

The employment temperature also showed differences by industry. Face-to-face jobs such as retail and wholesale and arts, sports, and leisure-related services decreased by 136,000 and 39,000 respectively. Industries that suffered the most severe shocks, such as non-face-to-face distribution expanding due to COVID-19 and the contraction of the cultural and arts industry, still showed a chilly atmosphere.

Professor Geum Jae-ho of Korea University of Technology and Education analyzed, "Considering the base effect, it is still difficult to say that the overall trend has fully recovered. The fact that employment rates have risen particularly among youth and the elderly means that overall, the economy has not recovered, and short-term temporary workers have increased."

The government announced that it aims to recover to pre-COVID-19 levels within this year and will focus its efforts on related policies in the second half. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "Employment conditions remain difficult in sectors such as retail and wholesale and self-employed workers. Employment improvement in these areas and job measures for vulnerable groups such as youth and women are urgent and important policy tasks that must be addressed immediately."

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