Number of Manufacturing Workers Decreases by 76,000
Largest Decline Since December Last Year
Experts Say "Impact of COVID-19 and 52-Hour Workweek"
[Asia Economy Reporter Jang Sehee] Last month, the number of employed persons increased by 518,000 compared to the same month last year due to the base effect from the previous year, while the decline in manufacturing employment widened.
According to the 'August Employment Trends' released by Statistics Korea on the 15th, the number of employed persons was 27,603,000, an increase of 518,000 (1.9%) compared to the same month last year.
The increase slowed compared to last month (542,000) as the elevated social distancing measures in the Seoul metropolitan area from July affected the August employment market.
Manufacturing employment, which had increased compared to the same month last year, decreased by 76,000 compared to the same month last year. This marks the largest decline since December last year when manufacturing employment fell by 110,000.
Jung Dongmyung, Director of the Social Statistics Bureau at Statistics Korea, said, "The decline in employment in automobile and trailer manufacturing, as well as textile product manufacturing, has widened," adding, "Employment in electronic component manufacturing has also turned to a downward trend."
Experts believe that considering the export market is performing well, the full implementation of the 52-hour workweek has had a significant impact.
Professor Park Youngbeom of Hansung University’s Department of Economics stated, "From July this year, the 52-hour workweek system has been applied to small workplaces with 5 to fewer than 50 employees," and added, "Due to increased cost burdens, workforce reductions were likely inevitable." He views the decrease in employment as a result of the full implementation of the 52-hour workweek.
Meanwhile, besides manufacturing, employment decreased by 113,000 (3.3%) in wholesale and retail trade, and by 43,000 (8.3%) in arts, sports, and leisure-related services.
Last month, the fourth wave of COVID-19 began mainly in the Seoul metropolitan area, leading to strengthened social distancing measures. Employment increased in health and social welfare services (243,000, 10.1%), transportation and warehousing (107,000, 7.3%), and construction (123,000, 6.1%).
The number of unemployed persons last month was 744,000, down 120,000 (13.9%) from the same month last year, marking a decrease for five consecutive months. This is analyzed to be due to prolonged COVID-19 and the resulting uncertainty, causing companies to reduce new hires or conduct small-scale hiring through on-demand recruitment.
The economically inactive population was 16,758,000, a decrease of 106,000 (0.6%) compared to the same month last year. The economically inactive population refers to people aged 15 and over who are neither employed nor unemployed. These are people who are not participating in economic activities or have no intention to do so, such as full-time homemakers, the elderly, job seekers preparing for employment, students preparing for further education, and those who have given up job searching.
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