"Shock of employment, minimum wage – impact on investment … Government is due to declining population"

"As new jobs fell below a third of the government's goal for five months, The job is no longer a shock but a chronic illness in the Korean economy. "Cheong Wa Dae explained that temporary factors such as spring rain have worked when disaster struck. employment occurred in May with an increase in the number of employed people reaching 72,000. However, in June, the number of employed workers remained at a standstill, and the fact that the manufacturing sector, which is a ratio on the creation of jobs, shows that the bottom of the job capacity is confirmed.

The shock of employment lasted five months, the number of workers in the industry manufacturing industry has decreased the most in a year and a half after falling into a long and deep tunnel. In the manufacturing industry, which accounted for about 40% of the labor market, the number of employed people was declining in all major industries such as food and retail, hospitality and catering , and the monthly increase in the number of employees was less than 100,000. The government, which had originally hoped that employment would improve since last month, was embarrbaded. The experts pointed out that Cheong Wa Dae and the government should recognize the fact that the labor market can not be easily improved due to population decline and economic downturn and should take fundamental measures to increase business employment through to regulatory innovation.

○ Unemployment in the manufacturing industry

According to the employment trend published by the National Statistics Office on November 11, the number of employees increased by 106,000 in June compared to the same month of last year. The increase in the number of workers in May was slightly higher than the increase in the number of employees to 62,000, but it differs considerably from the creation of 320,000 new jobs targeted by the government.

The number of workers rose from 334,000 in January After falling to 104,000 in February, it did not exceed the initial level of 100,000 for five months. This is the first time since the global financial crisis of September 2008 that the number of employees has increased over the previous year to reach 100,000 for the fifth consecutive month.

The number of people employed in all industries that support the labor market, such as manufacturing, wholesaling, retailing, the hotel and restaurant industry, has declined. The manufacturing sector lost 126,000 jobs compared to the same period last year. The number of workers in the manufacturing industry has decreased by more than 120,000 since last January (a decrease of 170,000). In May, the number of workers in the manufacturing industry fell sharply due to the restructuring of GM Korea's Gunsan plant.

A government official said, "As a result of the restructuring of automobiles and shipbuilding, contractors have closed and employees have fallen." City, retail, accommodation and food businesses continue to decline monthly this year due to the effects of the increase in the minimum wage.

○ The government that responded to "disasters of employment"

Some point out that Cheong Wa Dae and the government have not been able to diagnose the reality while the employment situation was at worst. Last month, Cheong Wa Da said: "When the employment index went bad in May, the decline in the number of people aged 15 to 64, the increase in the number of workers and the increase in official exams have influenced employment. "

The structural change has already been anticipated, and it has not been transformed into a major cause of misuse.

Kim Dae-il, professor of economics at the Seoul National University, said, "The demographic shift has continued to be a long-term trend." In the end, because there is no business investment, the work is gone, and the explanation that the population has reduced the number of workers is difficult to understand. "

Contrary to the government's initial explanation, the increase in the number of working days did not result in growth in employment. Last month, the government insisted: "Even if the number of workers is reduced, the quality of jobs improves, as the increase of regular jobs ", but this is not convincing.

○" The measures of 39, increase in civil employment should favor business investment "○ The increase in the number of regular workers in July n decreased to 365,000 in June from the increase in the number of regular workers in January and February.

Cheong Wa Dae has vague hopes that employment indicators will improve based on a misdiagnosis. Last year, the former head of the presidential office said: "If the execution of the supplementary budget, public employment, and the shortening of working hours become large-scale, it will have a positive impact on the job market. "However, it focuses on preventing the disappearance of jobs, such as supporting labor costs, by raising the minimum wage rather than creating new jobs. Businesses have focused on how to increase productivity with existing workforce rather than attracting more workers in preparation for shorter work hours.

] Experts believe that companies can increase their jobs by reducing the cost of hiring them.The private sector does not have the opportunity to create new jobs because of rising corporate taxes, wage uncertainties minimum and of various regulations.

Sung Tae Yoon, professor of economics at Yonsei University, pointed out that "by encouraging companies to invest in the market by eliminating uncertainties, such as sending a signal to the market that the government is ready to improve the business environment. "

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