[KH explains] Why Korea has been so quick to adopt ‘global minimum tax’
Mass walkout by trainee doctors nears deadline as health services crippled
Teachers and native English instructors now required to undergo drug testing
[Today’s K-pop] Karina of aespa is dating actor Lee Jae-wook: report
Russia sending North Korea food in return for arms: Seoul defense chief
Yoon says 2,000 increase in med school quota non-negotiable
Legality issues linger as nurses fill treatment void Tuesday
Why Cha Eun-woo’s name keeps popping up in politics
University ranking hierarchy leads to wage gap later in life: study
Ultrafine dust levels this year could be severe: ministry
S. Korean job market faces bleak outlook next year: KCCIBy Lee Yoon-seo
Published : Oct. 30, 2022 - 20:06
South Korea’s employment elasticity to GDP growth is expected to fall drastically next year amid a widespread of recession fears and corporate belt-tightening across industries, a report found Sunday.
According to the report released by the Korea Chamber of Commerce and Industry, the nation’s employment elasticity -- the percentage change in employment associated with a 1 percent growth in GDP -- posted a record high this year.
Based on Bank of Korea estimates, this year Korea is expected to see its GDP growth rate hit 2.6 percent and the employment growth rate hit 2.7 percent, respectively.
That means this year’s employment elasticity is 1.04, the highest figure since 1963. The report said an overall increase in youth and elderly employment and a decline in foreign workers due to the pandemic affected the employment rate.
But the figure is projected to fall to 0.24 next year, with the employment growth rate plunging to 0.5 percent.
“Facing weaker profitability and tighter capital market, companies are expected to reduce new hires and adjust their manpower infrastructure, making it difficult for job seekers to get a job,” said Kim Cheon-gu, a researcher at the KCCI.
With a bleak outlook for next year’s labor market, the report pointed out that the nation’s labor market is in need of adjustments. There are too few IT specialists despite the industries' demand for them, and the unemployment rate in face-to-face services is increasing with the services quickly being automated.
To remedy the situation, the KCCI advised that job training and reeducation support should be expanded to the elderly and those with unstable jobs, while adding that "young firms," or companies with relatively short histories such as startups, must be well-supported to create more jobs and maintain the dynamicity in the private sector.
The report also recommended changes to be made to firms' corproate culture, such as allowing more flexible working hour schedules, and compensating employees according to the nature and difficulty of the work, to follow the changing needs of the labor market.
[Herald Interview] Rival heir to Kim Ju-ae unlikely to appear: unification minister
Coupang reports first profitable year
Main opposition wrestles with exodus over nomination spat