Value context and insight. lkm@koreatimes.co.kr
Job market battered by third wave of COVID-19
By Lee Kyung-min
Job losses continue for the ninth consecutive month in Nov.
By Lee Kyung-min
Job losses here continued for the ninth consecutive month in November, the second longest period of increasing unemployment since the 16 months from January 1998 to April 1999 following the Asian financial crisis.
It also surpassed the previous eight consecutive months of decline from January through August in 2009 during the global financial crisis.
The number of people who said they had been “resting,” soared 10.2 percent, or 218,000, the highest since 2003, when statistics started to be compiled.
Experts say December figure will be far worse given the temporary shutdowns of many small- and medium-sized enterprises (SMEs) due to the third wave of the COVID-19 pandemic, as illustrated by new infections being reported in the hundreds every day for the past few weeks and passing the 1,000 mark on two of those days.
Data from Statistics Korea showed Korea lost 273,000 jobs month-on-month, since the decline began in March, when the COVID-19 pandemic began to weigh heavily on the local job market.
The loss was lower than the 421,000 in October, mostly because social distancing was eased to Level 1 Oct. 12.
The quality of jobs is also deteriorating, as evidenced by a significant increase in public sector jobs typically created by the government for seniors, sharply contrasted by the fall in manufacturing jobs and jobs typically held by young people.
The number of employed people aged 60 and older increased 372,000 month-on-month, but jobs held by all other age groups decreased. People in their 20s saw 209,000 jobs disappear, followed by those in their 30s (194,000), 40s (135,000), and 50s (74,000).
By industry, the number of people employed in public administration and defense increased by 152,000, or 13.6 percent, while health and social welfare services added 114,000 jobs, up 5 percent from last year.
By contrast, manufacturing industries shed 113,000 jobs in November, following a loss of 98,000 in October.
Hospitality and restaurant businesses lost 161,000 jobs while wholesale and retail businesses saw 166,000 evaporate, both being sectors highly vulnerable to the government regulations imposed during the pandemic.
Seoul National University economist Kim So-young said the third wave of infections will entail the hardest blow to the job market.
“Level 3 social distancing is being considered, the implementation of which will essentially devastate the lives of many people already under extremely strained financial conditions. They have no way of earning a living if they have no customers, and part-time workers will be let go as a result.”
Deputy Prime Minister and Finance Minister Hong Nam-ki expressed concerns that job market woes will deepen in the coming months.
“We are concerned that the employment impact of the third outbreak of the virus in November will likely continue through December and next January,” he said during a ministerial-level meeting at the Seoul Government Complex in Gwanghwamun.
A Seoul National University survey conducted in the first two weeks of December showed that over one in four said now is the most dangerous time in the yearlong continuation of the pandemic.
In a survey of 2,110 people on the state of their livelihoods, 26.7 percent said Korea is experiencing the greatest threat “now,” second to what it experienced in March when the counrty was hit by the first wave of the coronavirus pandemic.