'Solo Boss and Manual Labor' Reemployment Willingness Also Crushed by COVID-19

Number of Hopefuls Drops Sharply This Year... 'Waiting and Watching' Rather Than Rushing to Get a Job

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee (40), who worked at a plating factory in Changwon, Gyeongnam for 15 years, is considering helping out at a restaurant run by his older brother. He became unemployed after being recommended for resignation due to company management difficulties in January this year, but he cannot bring himself to look for a new job. Lee said, "I know self-employment is difficult because of COVID-19, but rather than trying to be a salaried worker again, I think it's better to learn the know-how at the restaurant."

Since COVID-19, the number of people giving up on reemployment has been increasing. The number of former self-employed and salaried workers (regular, temporary, and daily workers) hoping for reemployment has significantly decreased this year.

On the 19th, Asia Economy analyzed the July microdata from Statistics Korea and found that last month, 56,000 former self-employed people hoped to find employment, down 28.6% from 76,000 in the same month last year. Among former self-employed without employees, so-called 'solo entrepreneurs,' the number dropped 34.3% from 70,000 to 46,000 during the same period. The number of former salaried workers hoping for employment also decreased by about 60,000, from 826,000 in July last year to 762,000 last month.

Despite being unemployed, the number of people hoping for reemployment has decreased because the job market is unstable and there is a strong preference for stable jobs. A man in his 30s, Mr. A, who works as a daily laborer at a construction site in Seoul, said, "It's hard to get a regular position, so I think I'll just earn cash."

There is also a strong sentiment that even gaining work experience (specs) through short-term jobs provided by the government does not lead to becoming a regular full-time employee. Along with this, the business impact of COVID-19 and the trend of companies hiring experienced workers on an as-needed basis rather than new graduates are also factors discouraging job seekers from pursuing reemployment.

The government has not presented any clear measures other than increasing financial input. The Ministry of Employment and Labor plans to invest 30.5131 trillion won in job policies based on this year's main budget. Of this, 51%, or 15.5683 trillion won, will be spent on policies aimed at bringing job seekers who have given up back into the labor market, such as direct jobs, vocational training, employment services, and employment incentives. Most of the 2.5877 trillion won received through two supplementary budgets this year will also be spent on these projects. Last year, 50.2% of the main budget of 25.4998 trillion won, or 12.7965 trillion won, was invested in these projects. Although the same strategy is being used again, it seems to be less effective this year.

Experts worry that if the belief that short-term work experience programs do not lead to regular employment strengthens, the job market could become more depressed. Professor Geum Jaeho of Korea University of Technology and Education said, "As more job seekers judge that the specs gained from short-term jobs provided by the government do not give them a chance to enter large corporations or public enterprises, job abandonment and discouraged unemployment are increasing," adding, "Job seekers are likely to continue to take a wait-and-see approach rather than actively pursuing career changes."

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