Employment Increased by 553,000 in November... Shift to Decline in Accommodation and Food Services (Update)

Self-Employed with Employees Decline for 36 Consecutive Months
Solo Entrepreneurs without Employees Rise for 34 Consecutive Months

Unemployment Rate at 2.6%... Lowest November Level in 8 Years

On the afternoon of the 8th, a notice of business closure was posted at a restaurant on the streets of Hongdae, Seoul. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The number of employed people last month increased by about 550,000 compared to the same month last year. Although it showed an increase for nine consecutive months, the growth rate fell below 600,000 for the first time in three months. The upward trend of self-employed without employees (so-called 'na hollo sajang') and the downward trend of self-employed with employees remained clear. Due to the increase in daily confirmed COVID-19 cases following the easing of quarantine measures, employment in accommodation and food services such as restaurants and pubs turned to a decline.

According to the 'November Employment Trends' announced by Statistics Korea on the 15th, the number of employed people last month was 27,795,000, an increase of 553,000 compared to the same month last year. It showed an increase for nine consecutive months since the rebound in March. However, the 'increase of more than 600,000' recorded in April-May and September-October somewhat eased. The unemployment rate for those aged 15 and over was 2.6%, the lowest for November in eight years since November 2013 (2.6%). The economically inactive population was 16,653,000, down 23,000 from the same month a year earlier. Jung Dongmyung, Director of the Social Statistics Bureau at Statistics Korea, explained, "Due to industrial structural changes toward non-face-to-face and digital sectors and favorable exports, the number of employed people increased while the unemployed and economically inactive population decreased," adding, "The employment recovery trend continues."

By industry, health and social welfare services increased by 279,000 (11.6%), transportation and warehousing by 148,000 (9.8%), while wholesale and retail trade decreased by 123,000 (-3.5%), accommodation and food services by 86,000 (-4%), and public administration, defense, and social security administration by 81,000 (-6.3%). The continued sluggish employment in wholesale and retail trade and accommodation and food services, which are mainly cited as criteria for judging economic recovery, is notable. Director Jung said, "The reason accommodation and food services turned to a decline is that daily confirmed cases increased due to the phased return to daily life and easing of quarantine measures last month, causing employment decreases mainly in restaurants and pubs," and added, "The decrease in public administration seems to be a base effect following the high increase in the second half of last year."

The employment stability of self-employed persons was found to be low. Last month, self-employed without employees increased by 42,000, showing an increase for 34 consecutive months since February 2019. On the other hand, self-employed with employees decreased by 4,000, continuing a decline for 36 consecutive months since December 2018. This is interpreted as a complex effect of the expansion of kiosks and unmanned businesses, trends to reduce labor costs, and an increase in platform workers.