August Business Survey Results Announced by Ministry of Employment on 28th
Impact of COVID-19 Resurgence... Manufacturing Industry Declines for 7 Consecutive Months
Due to the resurgence of COVID-19, the closure rate of self-employed businesses is increasing. On the 14th, used kitchenware was piled up on the kitchenware street in Hwanghak-dong, Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Kim Bo-kyung] Due to the resurgence of the novel coronavirus disease (COVID-19) in South Korea, the number of workers in the accommodation and food service industries decreased by more than 150,000 last month. The number of other workers, including special-type workers (teukgo) such as private tutors, also saw an expanded decline.
According to the August Business Workforce Survey results announced by the Ministry of Employment and Labor on the 28th, the total number of employees at domestic businesses with one or more workers was 18.519 million last month, down 90,000 (0.9%) compared to the same month last year. The decrease compared to the same month last year was smaller than in July (138,000).
The number of business employees turned negative in March this year as the impact of COVID-19 spread intensified, with a decrease of 365,000 in April, but the decline has been gradually shrinking since May.
Looking at the increase or decrease in the number of workers by detailed categories such as industry, the impact of the COVID-19 resurgence was confirmed in various sectors. The number of workers in accommodation and food services, which are heavily affected by avoidance of face-to-face contact and social distancing, decreased by 151,000 last month, a larger decline than in July (120,000).
Additionally, the number of workers in the education services industry, including private academies, increased by 18,000 in July but decreased by 5,000 last month. The decrease in workers in business facility management industries such as travel agencies expanded from 61,000 in July to 65,000 last month.
The manufacturing industry, a core sector of the domestic economy, has continued to see a decline for seven consecutive months since February this year. The decrease last month was 77,000, larger than July’s 73,000.
On the other hand, the number of workers in public administration, including government-funded job projects, increased by 183,000 last month. This increase was about three times that of July (64,000). Despite the COVID-19 resurgence last month, the overall reduction in workers was mitigated significantly due to the decisive contribution of public administration.
By employment status, the number of other workers decreased by 54,000 compared to the same month last year, with the decline larger than in July (44,000). Other workers include those who receive sales commissions without fixed salaries, including teukgo.
Last month, the number of regular employees decreased by 163,000, while temporary and daily workers increased by 126,000.
The Business Workforce Survey targets domestic businesses with fixed workplaces, excluding agriculture and similar sectors. Workers employed by subcontractors in construction without fixed workplaces and those in household service industries are excluded.
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