1.14 Million Unemployed in July... Highest in 21 Years

Employment Trends

Number of Employed Persons Decreases for 5 Consecutive Months
Prolonged COVID-19 Pandemic... 580,000 People Give Up Job Seeking

On the 10th, unemployment benefit applicants are entering the Western Employment Welfare Plus Center in Mapo-gu, Seoul. Photo by Mo Nam Moon munonam@

[Sejong=Asia Economy Reporter Joo Sang-don] The employment shock caused by the novel coronavirus disease (COVID-19) is prolonging. The number of employed persons has decreased for five consecutive months, marking the longest decline since January-August 2009 during the global financial crisis, and the number of unemployed is approaching 1.14 million, reaching the highest level in 21 years.

According to the 'July Employment Trends' released by Statistics Korea on the 12th, the number of employed persons aged 15 and over was 27.106 million, down 277,000 (-1.0%) compared to the same month last year. The number of employed persons has been decreasing for five consecutive months since March this year (-195,000), when the impact of COVID-19 began. The employment rate also fell by 1.0 percentage point from a year earlier to 60.5%, marking the lowest level for July since 60.2% in July 2011.

The unemployment statistics are even more severe. The number of unemployed in July was 1.138 million, the highest for the same month since July 1999 (1.476 million) during the aftermath of the International Monetary Fund (IMF) financial crisis. The increase in unemployed persons has continued for three months since May this year (133,000). The unemployment rate also recorded 4.0%, showing the highest level since 6.7% in July 1999.

The economically inactive population reached 16.551 million, the highest since the statistical compilation criteria changed in July 1999. The number of people who 'rested' increased by 225,000 (10.8%) compared to a year ago, and those preparing for employment increased by 69,000 (9.3%). In particular, among the total economically inactive population, those who gave up job seeking reached 580,000, an increase of 55,000.

Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, said, "The poor employment in July is due to the continued decrease in temporary jobs in accommodation and food services, wholesale and retail trade, and education services, caused by restrictions on gatherings and outings to prevent the spread of COVID-19 infections and a sharp decline in tourist inflow," adding, "The improvement in employment indicators will appear somewhat late."