Employment Increased by 550,000 in November... But Accommodation and Food Services Declined Due to Surge in COVID-19 Cases (Comprehensive)

Number of Self-Employed with Employees Declines for 36 Consecutive Months

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] Last month, the number of employed persons increased by more than 550,000 compared to the same month last year, marking nine consecutive months of growth. However, due to the surge in COVID-19 cases following the phased return to normal life, employment in the accommodation and food service sectors turned to a decline. The number of self-employed individuals with employees has decreased for three consecutive years amid the crisis in self-employment.

According to the 'November Employment Trends' released by Statistics Korea on the 15th, the number of employed persons last month was 27.795 million, an increase of 553,000 compared to the same month a year earlier. Although it showed an increase for nine consecutive months since March, the growth rate slowed compared to the monthly increase of around 600,000 in September and October.

The relatively moderate decrease in employment last November compared to other months created a base effect, and the reduction of 86,000 and 123,000 employed persons in the accommodation & food service and wholesale & retail trade sectors respectively had a significant impact. In particular, employment in the accommodation and food service sector, considered the hardest hit by COVID-19, increased by 39,000 in September and 22,000 in October but turned to a decline after three months.

Jung Dongmyung, Director of the Social Statistics Bureau at Statistics Korea, explained, "With the implementation of 'With Corona' and the easing of quarantine measures last month, the daily number of confirmed cases increased, leading to employment decreases mainly in restaurants and pubs."

The employment situation for self-employed individuals is also worsening. Last month, the number of self-employed persons with employees decreased by 4,000, marking 36 consecutive months of decline since December 2018. On the other hand, self-employed individuals without employees, known as 'solo entrepreneurs,' increased by 42,000, continuing a 34-month streak of growth since February 2019. This is interpreted as a complex effect of the expansion of kiosks and unmanned businesses alongside the sluggish business conditions caused by COVID-19.

Daily workers also decreased by 175,000, continuing a seven-month downward trend since May. The decrease in November was the largest since January (-232,000).

By age group, employment increased among those aged 60 and over (331,000), those in their 20s (156,000), and those in their 50s (149,000), but decreased by 69,000 and 27,000 among those in their 30s and 40s, respectively.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a 'Ministerial Meeting (Green Room Meeting)' at the Government Seoul Office on the morning of the same day and said, "While employment conditions remain difficult in wholesale & retail trade and accommodation & food service sectors, the decrease in self-employed persons with employees and daily workers has continued, and due to the recent spread of COVID-19 and variant viruses, uncertainty in the employment market has expanded. We will strengthen policy efforts to achieve full employment recovery."