"Partial Improvement in Domestic Financial Market Liquidity... SPV Establishment This Week"
[Asia Economy Reporter Jang Sehee] Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, said regarding the June employment trends announced on the day, "It is a painful part that the recovery speed of youth jobs is slow due to the employment shock impact centered on the service industry, which has a high proportion of young people."
On the 15th, Vice Minister Kim held a macroeconomic and financial meeting at the Seoul Banking Hall and stated, "Uncertainty in the employment market due to the novel coronavirus infection (COVID-19) remains high."
Vice Minister Kim emphasized, "It is difficult to estimate how long it will take for the rapidly reduced jobs to be restored to their original state," and "The pattern of jobs in the post-COVID era may look very different from the past."
According to the June employment trends announced by Statistics Korea on the day, the number of employed people last month was 27,055,000, a decrease of 352,000 compared to a year ago. In particular, the number of employed youth aged 15 to 29 decreased by 170,000.
Looking at the increase or decrease in the number of employed people by industry, it was found that there was a decrease in accommodation and food service industries (-186,000), wholesale and retail trade (-176,000), education services (-89,000), and manufacturing (-65,000).
Vice Minister Kim further analyzed, "In the case of manufacturing, the decrease is expanding due to the secondary shock caused by COVID-19, such as domestic and foreign economic slowdown and export decline." He added, "We will make every policy effort to significantly expand quality jobs in our employment market in the mid to long term."
Regarding the domestic financial market, he said, "The overall liquidity situation in the domestic financial market has improved, but the possibility of increased market volatility due to uncertainties related to COVID-19 still exists, so we cannot be complacent."
He said, "The purchase institutions for low-credit rating corporate bonds and commercial papers (CP) are scheduled to start purchases in July," and "We will proceed with speed, such as establishing a special purpose vehicle (SPV) within this week."
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