Employment increased by 652,000 in October... Hong Nam-gi says "99.9% recovery from pre-COVID levels" (Update)

'With Corona' Effect Still
Retail and Wholesale Employment Down 3.3%

Solo Entrepreneurs Increase for 33 Months
Employers with Staff Decline for 35 Months

[Sejong=Asia Economy Reporter Moon Chaeseok] The number of employed people increased by about 650,000 compared to the same month last year. This marks eight consecutive months of growth, with an increase of 600,000 over the past two months. However, the rising trend of self-employed individuals without employees and the decline in self-employed individuals with employees remain clear, indicating that the effects of the phased return to normal life (With Corona) have not yet materialized. Regarding the increase in employment, the government responded positively, stating that "the number of employed people has recovered to 99.9% of the pre-COVID-19 expansion level."

According to the 'October Employment Trends' released by Statistics Korea on the 10th, the number of employed people last month was 27,741,000, an increase of 652,000 compared to the same month last year. Since rebounding in March, employment has increased for eight consecutive months, with the number of employed people rising by over 600,000 in both April-May and September-October. The unemployment rate for those aged 15 and older was 2.8%, the lowest October figure in eight years since October 2013 (2.7%). The economically inactive population recorded 16,620,000, down by 116,000 compared to the same month last year. Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, explained, "Employment increased due to industrial shifts toward non-face-to-face and digital sectors, export growth, and base effects compared to the relatively sluggish October last year," adding, "(Conversely) the number of unemployed and economically inactive people decreased, showing a continued trend of employment recovery."

By industry, the healthcare and social welfare services sector increased by 300,000 (12.5%), while wholesale and retail trade decreased by 113,000 (-3.3%), which is notable. The healthcare and social welfare services sector includes workers in government short-term public jobs lasting about six months and employees at private hospitals. It is also noteworthy that wholesale and retail trade, which mainly consists of face-to-face service industries such as restaurants and accommodation, continues to decline. Employment trends in this sector are often cited as a benchmark for judging economic recovery.

The employment stability of self-employed individuals remains low. Last month, the number of self-employed without employees increased by 45,000, marking 33 consecutive months of growth since February 2019. Director Jung explained, "This is interpreted as being influenced by the expansion of kiosks, unmanned businesses, and platform-based workers," noting that increases were mainly seen in transportation and warehousing, agriculture, forestry and fisheries, and accommodation and food services. Conversely, self-employed individuals with at least one employee decreased by 26,000, marking 35 consecutive months of decline since December 2018. This indicates an increase in self-employed individuals who manage all business activities such as cooking and serving alone. Director Jung said, "Due to industrial structural changes and the prolonged COVID-19 pandemic, self-employed individuals without employees have increased mainly in wholesale and retail trade and manufacturing."

The government responded positively to the increase in employment and decrease in unemployment. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, posted on his social media immediately after the Statistics Korea announcement, stating, "Since February, employment recovery has continued, and the number of employed people has increased to 99.9% of the highest level before the COVID-19 outbreak in February 2020," adding, "Only 36,000 more people are needed to fully recover to pre-pandemic levels." However, Deputy Prime Minister Hong emphasized, "The employment situation remains difficult for groups severely affected by COVID-19, such as self-employed individuals with employees who decreased by 26,000, and employment in wholesale and retail trade (-113,000) and manufacturing (-13,000), which have been significantly affected by employment and industrial structural changes even before the pandemic, also declined," and stressed, "We will remain vigilant and examine more closely the employment situation of vulnerable and affected groups and sectors."

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