1.23 Million Unemployed in June... Highest in 21 Years

2.3 Million People Not Seeking Jobs and Taking a Break

Employed Population Decreases by 350,000, Declining for Four Consecutive Months

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[Sejong=Asia Economy Reporter Ju Sang-don] Due to the impact of the novel coronavirus disease (COVID-19), the number of unemployed people last month reached the highest level in 21 years since June 1999, following the International Monetary Fund (IMF) financial crisis. The population not seeking jobs and taking a break approached a record high of 2.3 million.

According to the June employment trends announced by Statistics Korea on the 15th, the number of employed people aged 15 and over was 27,055,000, a decrease of 352,000 (-1.3%) compared to the same month last year. This marks the fourth consecutive month of decline, starting from March this year (-195,000).

Following the decrease in the number of employed people, the employment rate for those aged 15 to 64 fell by 1.3 percentage points to 65.9% compared to the same month last year, reaching the lowest level for June since 2014. The overall employment rate for those aged 15 and over also dropped by 1.2 percentage points to 60.4%, marking the lowest June figure since 2010.

Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, explained, "We believe that the sharp decline in automobile exports due to COVID-19 spread, movement restrictions, and production halts in major export countries such as the United States and Europe, which are economic lockdowns, has affected the decrease in manufacturing employment."

The population classified as 'taking a break' among the economically inactive population was 2,296,000, an increase of 289,000 compared to one year ago. This is the highest figure for June since related statistics began being compiled in January 2003. The number of unemployed (1,228,000) and the unemployment rate (4.3%) recorded the highest levels in 21 years since June 1999. In particular, the youth unemployment rate (ages 15-29) was the highest at 10.7%.

On the same day, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "Employment trends are a measure directly connected to people's livelihoods," adding, "I am once again deeply saddened by the news that many people are still struggling due to job losses."