The 4th Wave of COVID-19... Increased Uncertainty in Employment and Domestic Demand

Quarantine as the Top Priority Employment Policy
Ministry of Economy and Finance Strives to Revive Domestic Demand and Employment

Deputy Prime Minister for Economy Hong Nam-ki attended the full meeting of the Planning and Finance Committee held at the National Assembly on the 13th and is talking with Lee Ok-won, the 1st Vice Minister of the Ministry of Economy and Finance. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Jang Sehee] As the fourth wave of COVID-19 intensifies with new confirmed cases reaching the 1,500 range, red flags have been raised for employment and domestic demand.

According to the Ministry of Economy and Finance on the 18th, the ministry has begun monitoring trends in the employment market and domestic demand recovery. A government official stated, "At present, it is difficult to make any judgments regarding achieving growth targets," and emphasized, "We need to observe how much the variable of the fourth wave of COVID-19 will impact the overall economy."

If social distancing measures are strengthened due to COVID-19 prevention policies, it is expected to negatively affect the employment market, especially in face-to-face sectors such as accommodation, restaurants, wholesale, and retail.

In fact, Lee Eok-won, the first vice minister of the Ministry of Economy and Finance, also said, "Since the pandemic, our employment market has been greatly affected by the prevention situation, especially in face-to-face service employment," adding, "Since prevention is inevitably the top priority employment policy, we will unite government-wide efforts with heightened vigilance to prevent the spread of COVID-19." This statement is interpreted as concern over delays or inability to implement job-related projects this year.

He continued, "We will faithfully carry out employment measures included in the economic policy direction for the second half of the year, such as extending the employment retention support payment period by 90 days for special employment support sectors and supporting job creation in COVID-19 affected fields like culture and arts," promising commitment.

Fourth Wave of COVID-19... "Possibility of Increased Uncertainty in Domestic Demand"

The resurgence of COVID-19 has also made the rebound of domestic demand uncertain. The Ministry of Economy and Finance foresees the possibility of expanded uncertainty related to domestic demand due to the resurgence of COVID-19.

From July last year to February this year, the ministry included phrases indicating uncertainty in the real economy for eight consecutive months. In March, it removed the uncertainty phrase, and in April, for the first time after the COVID-19 spread, it evaluated a mitigation of domestic demand slump. Since May, it used expressions indicating improvement in domestic demand, but this month it mentioned the possibility of expanded uncertainty.

Additionally, the government diagnosed, "Although global economic recovery expectations continue mainly among major countries externally, concerns about inflation persist, and the spread of COVID-19 is expanding again due to variant viruses."

Meanwhile, domestic card approval amounts in June rose 8.4% compared to a year ago, marking five consecutive months of increase since February. Department store sales also increased by 10.3%, showing five consecutive months of growth.

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