Employment Trends in Gyeongnam for the First Half of This Year: Workers and Manufacturing Down 2.0%

Service Industry Up 3.9% ... Number of Employed Down 7.6% Due to COVID-19 Impact

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] The employment trend in Gyeongnam for the first half of this year showed a sharp decrease in workers and manufacturing, while the service industry increased. In addition, due to accelerated aging, the number of workers in their 40s to 60s continued to increase, whereas the number of workers in their 20s to 30s decreased.

The Changwon Chamber of Commerce and Industry announced on the 6th the "2020 First Half Gyeongnam Employment Trend" based on the Employment Insurance DB of the Employment Information Service. As of the end of the first half of this year, the number of workers enrolled in employment insurance in Gyeongnam recorded 776,976, an increase of 1.2% compared to the same period last year.

By industry, the number of manufacturing workers was 329,150, a 2.0% decrease compared to the same period last year, while the number of service industry workers was 395,278, an increase of 3.9%, leading the overall increase in the number of workers. Also, the decrease in manufacturing workers and the increase in service industry workers have been a trend, with the number of service industry workers surpassing manufacturing workers since the first half of 2018.

Although the number of manufacturing workers decreased, the number of workplaces increased by 2.6% to 31,238. Due to the decrease in workers and increase in workplaces, the number of workers per workplace was 10.54, down 4.9 compared to the same period last year. The Changwon Chamber of Commerce explained that the number of workers per manufacturing workplace is showing a downward trend, indicating the continued downsizing of manufacturing in Gyeongnam.

Along with the increase in service industry workers, the number of workplaces also increased by 4.1% compared to the same period last year, reaching 77,702. With both the number of workers and workplaces increasing, the number of workers per workplace slightly decreased by 0.1 to 5.09 compared to the same period last year.

Furthermore, by age group, the number of workers in their 20s was 95,431 (-2.7%), in their 30s was 172,379 (-3.6%), showing a decrease compared to the same period last year, while those in their 40s were 211,241 (+0.7%), 50s were 191,833 (+3.1%), and 60 and above were 102,442 (+12.8%), showing an increase.

In particular, the decrease in workers in their 20s and 30s is prominent in manufacturing. Compared to the first half of 2016, based on male manufacturing workers, the number of workers in their 20s decreased by 29.6%, and those in their 30s decreased by 23.9%. On the other hand, during the same period, the number of manufacturing workers in their 40s increased by 0.6%, in their 50s by 1.4%, and those 60 and above by 9.3%.

A representative from the Changwon Chamber of Commerce stated, "Due to the impact of COVID-19, both employment and retirement, especially in manufacturing, have sharply decreased, causing rigidity in the labor market and accelerating the aging of workers," adding, "The number of medium-sized workplaces with 10 to less than 300 employees is showing a decreasing trend, which could pose a long-term risk factor for the Gyeongnam employment market."