95,000 Decrease in Accommodation and Food Service Workers Over 5 Years: "Impact of Automation and COVID-19"

Statistics Korea Releases '2020 Economic Census Results (Provisional)'

Decline in Shipbuilding and Insurance Workers... Increase in Health Welfare, Interior Design, and Consulting Sectors

The spread of COVID-19 and the strengthening of quarantine measures have deepened the worries of self-employed business owners. On the 16th, an employee was seen wiping a table at a restaurant in Jung-gu, Seoul. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok] The number of workers in the accommodation and food service industry decreased by 95,000 compared to five years ago. This is due to the expanded use of kiosks that take orders instead of employees, as well as the worsening business conditions caused by COVID-19. The number of workers in manufacturing and finance and insurance industries also declined due to the slump in shipbuilding and the expansion of non-face-to-face insurance subscriptions. Meanwhile, the number of workers increased in health and social welfare, public administration, professional, scientific and technical services, and information and communication industries.

Statistics Korea announced the '2020 Economic Census Results (Provisional)' data on the 28th, which shows the structure and management status of Korean industries. Since the 2010 census, Statistics Korea has conducted the economic census every five years. Starting with this survey, household-based businesses (e-commerce, one-person media, freelancers, etc.) that are difficult to capture through field surveys were newly included in the survey scope, and the 2015 data were also revised applying the expanded business scope.

As of the end of last year, the number of businesses nationwide was 6,013,000, an increase of 909,000 (17.8%) compared to 2015. The total number of workers nationwide was 24,834,000, an increase of 2,037,000 (8.9%).

By industry, the number of businesses increased most in wholesale and retail trade (176,000), construction (106,000), and accommodation and food service (99,000). The number of workers increased most in health and social welfare (733,000), construction (432,000), and professional, scientific and technical services (284,000). In the accommodation and food service industry, although the number of businesses increased by 99,000 (12.9%), the number of workers decreased by 95,000 (4.3%). This was the largest decrease in the number of workers among various industries. The number of workers declined in Korean general restaurants, other pubs, and general entertainment pubs.

Kim Sangjin, head of the Economic Census Division at Statistics Korea, said, "As more entrepreneurs use kiosks to reduce labor costs, the number of businesses increased but the number of workers decreased," adding, "Due to changes in food culture, Korean restaurants such as Seolleongtang have decreased, while Vietnamese pho restaurants and coffee shops have increased."

Operational difficulties caused by COVID-19 also led business owners to reduce employment. In manufacturing, the number of businesses increased by 52,000 (9.8%) compared to 2015, but the number of workers decreased by 91,000 (2.1%). Statistics Korea explained that the slump in shipbuilding was the main cause. In finance and insurance, the number of businesses increased by 3,000 (6.0%), but the number of workers decreased by 42,000 (5.5%) due to the increase in insurance subscriptions via the internet, which reduced the number of insurance planners. The number of workers also decreased in association and other services (9,000; 0.9%) and mining (2,000; 11.2%).

Industries with increased numbers of workers include health and social welfare, which increased by 733,000 mainly in home welfare service providers and vocational rehabilitation centers. Kim explained, "Due to policy effects, care services for the elderly and disabled have greatly increased." The number of workers in public administration, which has a large share of government job projects, also increased by 145,000 (21.1%). In construction, the number of businesses increased by 106,000 (29.3%) and the number of workers increased by 432,000 (25.1%), with the largest share in wallpapering, interior decoration, and interior carpentry. This is interpreted as a result of increased demand for interior repair and remodeling.

In professional, scientific and technical services, the number of workers increased by 284,000 (26.1%) mainly in management consulting and electrical and electronic engineering research and development. The number of businesses also increased by 64,000 (40.6%). In information and communication, the number of workers increased by 149,000 (23.9%) and the number of businesses increased by 35,000 (45.1%). In wholesale and retail trade, the increase in the number of businesses (176,000; 12.7%) was more prominent than the increase in the number of workers (75,000; 2.1%). Kim said, "Due to informatization and the Fourth Industrial Revolution, e-commerce is increasing and the industrial structure is changing toward reducing employment."

By region, the increase in the number of businesses and workers was largest in Gyeonggi and Seoul. The proportion of the metropolitan area (Seoul, Incheon, Gyeonggi) in nationwide businesses was 49.2%, up 0.8 percentage points (p) from five years ago, and the proportion in workers was 52.3%, up 0.6 p.

By size of workers, businesses with 1 to 4 employees increased by 890,000, showing the largest increase.

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