Employment Increased by 580,000 but Growth Rate Slows for Two Consecutive Months...

Uncertain Whether the Upward Trend Will Continue Due to Worsening COVID-19 Situation

A citizen waiting to receive counseling at the Seoul Jung-gu Employment Welfare Center. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The number of employed people increased by about 580,000 compared to the same month last year. As the economic recovery trend has become clear this year, a favorable wind is continuing in the job market. However, the growth rate has slowed for two consecutive months, and with the onset of the 4th wave of COVID-19 at the beginning of this month, it is uncertain whether the employment growth will continue.

According to the 'June Employment Trends' announced by Statistics Korea on the 14th, the total number of employed people last month was 27,637,000, an increase of 582,000 compared to the same month last year. This marks four consecutive months of growth since the rebound in March. Jeong Dong-myeong, Director of the Social Statistics Bureau at Statistics Korea, explained, "A combination of factors such as economic recovery including exports, maintenance of social distancing levels, and base effects appeared."

Employment in June was led by the youth (ages 15-29) and those in their 40s. The number of employed youth increased by 209,000 compared to the same month last year, showing the largest increase since July 2000 (234,000). Employment among those aged 40-49, who play the role of the 'economic backbone,' also increased by 12,000. This is the first time in 68 months since November 2015 that employment among people in their 40s has turned to an upward trend. By industry, employment increased in healthcare and social welfare services (208,000), construction (140,000), and transportation and warehousing (89,000).

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki stated on his SNS, "Employment has recovered to 99.4% of the level before the COVID-19 crisis in February 2020."

However, despite the increase in employment, the outlook is not optimistic. Employment among those in their 30s decreased by 112,000, continuing a decline for 16 consecutive months since March last year. By sector, wholesale and retail trade (-164,000), associations and organizations, repair and other personal services (-55,000), arts, sports, and leisure-related services (-43,000), and manufacturing (-10,000) all saw decreases.

Among the economically inactive population, the number of discouraged job seekers in the 'resting' category was 583,000, an increase of 46,000 compared to the same month last year. This is the largest figure for June since the revision of statistics standards in 2014. The number of self-employed without employees also increased by 113,000, marking the largest increase in one year and one month since May last year (118,000). Temporary workers increased by 360,000, showing a larger increase after two months since April (379,000).

The start of the 4th wave of COVID-19 this month is also negative for the job market. Statistics Korea cautiously noted the impact of strengthened social distancing measures on employment but stated, "There is a possibility of impact on wholesale and retail trade and accommodation and food services."

Deputy Prime Minister Hong said, "Recent strengthened quarantine measures have increased difficulties for small business owners and are expected to affect the job market as well. We will focus on policy responses to quickly suppress the spread of COVID-19 through strengthened social distancing and ensure that the employment recovery trend continues without disruption."

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