September Employment Trends
COVID-19 Resurgence Causes Expanded Unemployment Rate to Surge to 13.5%
Employment Rate Declines Across All Age Groups Except Those 60 and Older
Number of Unemployed Increases by 13% Year-on-Year to 1 Million
[Sejong=Asia Economy Reporter Joo Sang-don] The novel coronavirus disease (COVID-19) crisis has once again struck the employment market. After peaking in April this year, the decline in new employment widened again last month, and the expanded unemployment rate, which reflects the perceived unemployment rate, soared to a record high.
According to the 'September Employment Trends' released by Statistics Korea on the 16th, the employment auxiliary indicator 3 (expanded unemployment rate) rose to 13.5%, up 2.7 percentage points compared to the same month last year. This is the highest level ever recorded for September since statistics began in 2015. In particular, the expanded unemployment rate for the youth population rose by 4.3 percentage points to 25.4%, also marking a record high.
This sharp rise in the expanded unemployment rate reflects the full impact of the COVID-19 resurgence in mid-August. The decline in new employment widened, and the number of unemployed increased. The decrease in new employment had narrowed from a peak of 476,000 in April to 274,000 in August, but it surged again to 392,000 in September. This marks the seventh consecutive month of decline since March this year.
As the decrease in employment widened, the employment rate also dropped significantly. The employment rate for those aged 15 to 64 in September was 65.7%, down 1.4 percentage points from 67.1% in the same month last year. All age groups except those 60 and older experienced a decline in employment rates. Employment in industries with a high proportion of face-to-face work decreased particularly sharply.
The scale of employment decline was notable in accommodation and food services with 225,000 fewer employed (-9.8%), wholesale and retail trade and education services with 207,000 (-5.7%) and 151,000 (-7.9%) fewer employed, respectively.
On the other hand, the number of unemployed increased significantly. The number of unemployed in September reached 1 million, an increase of 116,000 (13.1%) compared to the same month last year. After the increase had narrowed to 6,000 in August, it surged again. The economically inactive population also rose to 16.817 million, up 532,000 (3.3%) year-on-year. Among them, those resting (288,000; 13.6%) and those engaged in household duties (271,000; 4.7%) increased, while those attending school or taking courses (-146,000; -3.9%) decreased.
Jung Dong-myung, Director of the Social Statistics Bureau at Statistics Korea, said, "In September, due to the COVID-19 resurgence since mid-August, the decline in employment widened, and conversely, the increase in unemployment grew." He added, "Employment indicators for October are expected to be positively influenced by the recent easing of social distancing measures."
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