Number of Employed People Drops Sharply in March

Statistics Korea announced on April 17 that the number of employed persons totaled 26,609,000 in March, a drop of 195,000 persons or 0.7 percent year-on-year.

The figure represented the sharpest fall since May 2009 (240,000 persons) when the nation was hit by a global financial crisis.

In February this year, the number of employed people increased 492,000 persons. The steep fall in March shows that the COVID-19 crisis has begun to take its toll.

The employment-population ratio for people aged 15 years or older recorded 59.5 percent in March, down 0.9 percentage points year-on-year. It is the lowest figure for March since 2013 (58.7 percent). 

The employment-population ratio for people aged 15-64, which is used by the OECD for comparison among member countries, posted 65.4 percent, down 0.8 percentage points from a year ago and the lowest for the month since 2016 (65.2 percent).

According to the data, the economically active population marked 27,789,000 in
March, which decreased 213,000 persons or 0.8 percent year-on-year.

The labor force participation rate stood at 62.2 percent in March, down 0.9 percentage points from a year ago.

Alarmed by the poor employment data, the Korean government said it will release measures to stabilize the job market next week.

Finance Minister Hong Nam-ki presided over a meeting with top officials in charge of employment policies, including the labor minister and presidential secretaries on economy and jobs.

The participants said the coronavirus has dealt a harsh blow to the service sector, including restaurants, hotels and retailers and wholesalers, with temporary workers and self-employed people hit hardest. 

They noted that the impact from COVID-19 will likely spread to other industries in light of domestic and foreign economic conditions.