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ED Recovering job market

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Time to boost economic activity by lifting regulations

The number of people employed at large and small companies posted a marked increase last month, raising hopes for an earlier-than-expected recovery in the job market. According to Statistics Korea and the Financial Supervisory Service's electronic disclosure system, the number of employed totaled 27.21 million in April, up 652,000 from the same month last year, and the fastest increase in 80 months.

The improvement in job data reflected the coronavirus pandemic-triggered base effect on employment, and the recent upswing in exports. What's encouraging is that people working for large companies with 300 or more employees numbered 2.8 million in April, up 187,000 from last year. The situation was very much the same with small- and medium-sized enterprises (SMEs) where 24.4 million people were employed, up 464,000 from a year ago. This was also the fastest gain since August 2014.

April's job data is welcome news for the people who have grappled with job losses over the past year due to the pandemic. It reflects the revival of exports, especially led by semiconductors, amid signs of an economic recovery. The country's real gross domestic product (GDP), adjusted for inflation, grew 1.6 percent in the January to March period from the previous quarter, returning to a pre-pandemic level.

Yet it's too early to be complacent, considering that the government has been struggling to shore up the economy by expanding its fiscal spending, including four supplementary budgets in 2020. What is needed first is for the government to change its policies so the market can function on its own. This means policymakers should focus on kick-starting the market and revitalizing our major industries while trying to boost private consumption. But the essential prerequisite to all this is lifting regulations across the board, which would in turn lead to job creation and income growth. It is imperative that the government quickly comes up with policies that can boost the morale of the business community.