Hong Nam-ki: "Employment Hits Bottom in January and Will Improve"

Presiding over the 'Emergency Economic Central Disaster and Safety Countermeasure Headquarters Meeting' on the 10th

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, speaking at the 29th Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office on the 10th. (Photo by Ministry of Economy and Finance)

[Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki said on the 10th, "Considering the recent quarantine situation, economic conditions, employment trends, and the speed of employment ripple effects from quarantine measures, I cautiously expect that employment will bottom out in January and gradually improve."

Deputy Prime Minister Hong made these remarks during an emergency economic central countermeasures meeting held at the Government Seoul Office on the same day.

According to Statistics Korea, the number of employed people last month decreased by 982,000 compared to the same month last year. This was the largest decline since the COVID-19 outbreak and also since the 1998 International Monetary Fund (IMF) foreign exchange crisis.

Regarding this, Deputy Prime Minister Hong stated, "Although it was anticipated, I cannot help but feel heavy-hearted about the difficult employment indicators."

He explained, "This employment shock is believed to be caused not only by the strengthening of quarantine measures but also by some seasonal factors such as heavy snowfall in January, frictional factors due to the end and resumption of year-end and New Year fiscal job projects, and a base effect from the employment improvement in January last year."

He added, "Considering the seriousness of the current employment situation, the government will prioritize maintaining employment and providing direct job opportunities, strengthening protection for groups outside the labor market, and promoting private sector jobs, and will respond with full force."

Regarding direct jobs, he said, "We will further strengthen the role of public sector jobs as a support by providing 900,000+α direct jobs in the first quarter."

He announced that more than 45% of the annual recruitment target of 26,000 people for public institutions will be hired in the first half of the year.

Deputy Prime Minister Hong said, "Public institutions will also expand recruitment in the first half and promptly hire 4,300 experiential interns in the first quarter."

He stated, "We will closely examine the recent employment situation, structural changes in the labor market, and this year's employment measures, and accelerate the review of customized job measures for youth and women based on this."

The government plans to announce measures in the first half of the year to revitalize youth employment, address women's job issues, support job transitions, enhance vocational skill development support, and strengthen public employment services.

Additionally, he mentioned ▲ payment of support funds for small business owners and the third emergency employment stabilization subsidy by next month ▲ support for 190,000 people under the National Employment Support System in the first quarter ▲ active resolution of investment difficulties in the 6.2 trillion won-scale new and expanded Yeosu petrochemical plant and Dongtan complex facility development ▲ promotion of three major venture projects including the introduction of regulatory sandboxes in research and development special zones and mobility sectors, and the Smart Korea Fund.