Hong Nam-ki "Concerns Persist Over Employment Contraction in Vulnerable Sectors in September... Recovery Expected This Month"

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, expressed concern over the deterioration of employment indicators observed in September. However, he predicted that related indicators would return to a recovery trend in October, as social distancing measures have been eased due to the recent slowdown in the spread of the novel coronavirus infection (COVID-19).

Deputy Prime Minister Hong made these remarks on the morning of the 16th at the Government Seoul Office during a meeting of relevant ministers. The meeting, chaired by Hong, was attended by the Minister of Employment and Labor, the Director of the Office for Government Policy Coordination, the Commissioner of Statistics Korea, the Senior Secretary for Economic Affairs, and the Senior Secretary for Jobs.

The attendees shared an understanding of the severity of the employment market situation in September, where the employment recovery trend from May to August was interrupted and worsened due to the resurgence of COVID-19. They expressed concern over the continued and deepening difficulties faced by vulnerable employment groups such as youth, temporary and daily workers, self-employed individuals, and industries vulnerable to COVID-19 such as accommodation and food services.

However, compared to the employment shock experienced in March and April, when the first wave of COVID-19 occurred, the degree of employment contraction is not as severe. It is expected that the easing of social distancing measures following the recent slowdown in the spread will lead to a resumption of employment recovery in October.

The government plans to promptly execute the 4th supplementary budget projects targeting employment-damaged groups, including the New Hope Fund for Small Business Owners, Emergency Employment Stability Subsidy, and Special Youth Job-Seeking Support Fund. In addition, it will implement employment market stabilization measures such as extending the support period for Employment Retention Subsidies, resuming issuance of eight major consumption coupons and holding the Korea Sale Festa, revising the Employment Insurance Act and implementing the National Employment Support System, and creating 600,000 fiscal jobs.