South Korea witness fastest dive in jobs since 1999 due to coronavirus lockdown

Coronavirus has harmed South Korea's employment rate. Though the unemployment rate has been unchanged in April, however, the number of employed fell at the fastest rate in two decades. 

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South Korea's unemployment rate in April remained unchanged from March with 3.8 per cent. But the number of employed as of April was 26.6 million, 476,000 fewer than last year's numbers. Hence, it has been the worst dive since 1999. 

In 1999, the country saw a dip of 658,000. This means 658,000 people lost their jobs in South Korea. 

South Korea, is the fourth largest economy in Asia has seen a steep downfall in the global demand for Korean goods leading to jobs vanishing across the service and manufacturing sectors. The policymakers have tried to keep the credit flowing in businesses by pumping out stimulus. 

The Korean government plans to invest more than $200 billion of stimulus or 10 per cent of GDP to slack the rate of unemployment. 

According to President Moon Jae-in, the country's economy is facing a "wartime situation" and is struck by "colossal damage" due to the pandemic. 

"The employment shock is also growing as time passes," Moon added.

"Unemployment fears are spreading beyond self-employed small business owners, non-permanent workers and day labourers to affect almost all employees, including full-time employees and those at mid-market companies and large businesses."

In terms of unemployment, workers at retailers and restaurant have been the hardest hit in the country as 334,000 new jobs fell in April than last year. 

South Korea's Finance Minister Hong Nam-ki said the government plans to imperatively create more than 550,000 jobs to protect self-employed businesses and those in temporary jobs.

(With inputs from Reuters)