[Korea] January payroll shows biggest loss in 22 years as unemployment soars

South Korea shed nearly 1 million from its January payroll, the biggest losses since 1998 when massive layoffs were executed in return for international bailout. The increase in the number of unemployed is now the largest on record after the ongoing COVID-19 crisis wreaked havoc on jobs, Pulse reports.

According to data released by Statistics Korea, the number of employed totalled 25.82 million in January, down 982,000 against 2020. The figure was the steepest on-year fall since the country lost 1.28 million jobs under IMF-led restructuring in December 1998.

Job numbers have been on a downward trajectory for 11 months since the March 2020 coronavirus outbreak. It is the longest slump since 1998-1999 when job losses extended for 16 consecutive months. The winter outbreak did further damage to the fragile job market.

The accommodation and restaurant sector lost 367,000 jobs, wholesale and retail 218,000 jobs, and association and organisation, repair and other private services sector 103,000 jobs. Surges in online shopping and delivery demand meant the transportation and warehouse segment added 30,000 jobs, business facilities management, business support and rental services segment 27,000 jobs and public administration, defence, and social security administration added 20,000 jobs.

Jobs were lost across all age demographics. The number of employed was 273,000 less among those in their 30s, 255,000 among 20s, 210,000 among 40s, 170,000 among 50s and 15,000 among 60s.

The employment rate among those aged 15 and older fell 2.6 percentage points to 57.4 per cent from 20; the lowest January figure since 2011.

The employment rate of Koreans aged 15 to 64 - the standard of the Organisation for Economic Cooperation and Development (OECD) - was down by 2.4 percentage points on-year to 64.3 per cent. Also the worst result for January since 2013.

Jobless numbers reached 1.57 million, rising 417,000 on-year. The tally marked the sharpest on-year increase since June 1999 when the statistics agency began to compile data.

The unemployment rate gained 1.6 percentage points from a year earlier to reach 5.7 per cent.

“Personal contact services like accommodation, restaurant, retail and wholesale were hit the hardest amid toughened mitigation rules,” Chung Dong-wook of Statistics Korea said. “The dismal job figure was also attributed to a base effect from the previous year when the number of new hires jumped by 568,000.”

South Korea shed nearly 1 million from its January payroll, the biggest losses since 1998 when massive layoffs were executed in return for international bailout. The increase in the number of unemployed is now the largest on record after the ongoing COVID-19 crisis wreaked havoc on jobs, Pulse reports.

According to data released by Statistics Korea, the number of employed totalled 25.82 million in January, down 982,000 against 2020. The figure was the steepest on-year fall since the country lost 1.28 million jobs under IMF-led restructuring in December 1998.

Job numbers have been on a downward trajectory for 11 months since the March 2020 coronavirus outbreak. It is the longest slump since 1998-1999 when job losses extended for 16 consecutive months. The winter outbreak did further damage to the fragile job market.

The accommodation and restaurant sector lost 367,000 jobs, wholesale and retail 218,000 jobs, and association and organisation, repair and other private services sector 103,000 jobs. Surges in online shopping and delivery demand meant the transportation and warehouse segment added 30,000 jobs, business facilities management, business support and rental services segment 27,000 jobs and public administration, defence, and social security administration added 20,000 jobs.

Jobs were lost across all age demographics. The number of employed was 273,000 less among those in their 30s, 255,000 among 20s, 210,000 among 40s, 170,000 among 50s and 15,000 among 60s.

The employment rate among those aged 15 and older fell 2.6 percentage points to 57.4 per cent from 20; the lowest January figure since 2011.

The employment rate of Koreans aged 15 to 64 - the standard of the Organisation for Economic Cooperation and Development (OECD) - was down by 2.4 percentage points on-year to 64.3 per cent. Also the worst result for January since 2013.

Jobless numbers reached 1.57 million, rising 417,000 on-year. The tally marked the sharpest on-year increase since June 1999 when the statistics agency began to compile data.

The unemployment rate gained 1.6 percentage points from a year earlier to reach 5.7 per cent.

“Personal contact services like accommodation, restaurant, retail and wholesale were hit the hardest amid toughened mitigation rules,” Chung Dong-wook of Statistics Korea said. “The dismal job figure was also attributed to a base effect from the previous year when the number of new hires jumped by 568,000.”