Seoul Citizens' Top Economic Issue for Next Year: 'Youth Unemployment and Employment Problems'

Seoul Institute: 2nd Place is Living Costs, 3rd Place is COVID-19 Related
Consumer Attitude Index Slightly Rises to 89.4 … Housing Purchase Attitude Index Declines for 2 Consecutive Quarters

[Asia Economy Reporter Jo In-kyung] Due to the contraction in consumption and economic recession caused by the spread of the novel coronavirus infection (COVID-19), youth unemployment and employment issues are expected to be the biggest economic concerns next year.

On the 27th, the Seoul Institute conducted a survey of 1,200 households in Seoul, and 24.1% of respondents selected 'youth unemployment and employment issues' as the economic issue for next year. This was followed by 'living costs (10.6%)', 'COVID-19 related (10.2%)', 'consumer sentiment and domestic economy (9.6%)', 'monthly rent price increase (7.6%)', and 'issues of self-employed and small business owners (6.3%)'.

The scores forecasting improvement for major economic issues were all below the baseline (100). This indicates that the majority of citizens believe these problems will be difficult to significantly improve next year as well.

The economic issue with the highest improvement forecast score was 'stock market (86.1 points)', followed by 'household income (71.5 points)', 'youth unemployment and employment (71.3 points)', 'consumer sentiment and domestic economy (70.7 points)', 'COVID-19 related (68.9 points)', and 'living costs (65.5 points)'. The 'low birthrate and aging population issue' scored 50.0 points, indicating it is expected to be the most difficult to improve.

The 'Consumer Attitude Index', representing the perceived economic condition of Seoul citizens in the fourth quarter of this year, was 89.4, an increase of 1.5 points compared to the previous quarter.

Although the 'Net Asset Index' declined, the 'Employment Outlook Index' rose, and the 'Consumer Attitude Index' is expected to remain below the baseline (100) for the time being if the third wave of COVID-19 continues.

Among the components of the Consumer Attitude Index, the 'Current Living Conditions Index' recorded 75.8, up 1.4 points from the previous quarter. The 'Future Living Conditions Index' also rose by 0.7 points to 93.9 compared to the previous quarter. This is because the number of households expecting improved living conditions one year later increased due to expectations for normalization of economic activities following the development of COVID-19 vaccines, increased household income, and rising asset values.

In the fourth quarter of 2020, Seoul citizens' 'Durable Goods Purchase Attitude Index' rose by 2.2 points to 81.2 compared to the previous quarter, whereas the 'Housing Purchase Attitude Index' fell by 2.7 points to 55.8, continuing its decline for the second consecutive quarter following the third quarter.