Payroll at large Korean companies slip to 7-year low in second quarter

2017.08.01 14:48:33 | 2017.08.01 14:49:13

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Payroll at large South Korean companies employing 300 or more slipped to a seven-year low while jobs at workplaces of four or fewer grew by the fastest pace in three years to underscore job squeeze in large enterprises due to prolonged slowdown in domestic demand, government data showed.

According to the Statistics Korea on Monday, the payroll at large companies lost 25,000 from a year ago to total 2,463,000 as of the end of July. The drop is the largest since the third quarter of 2010 in repercussions from the 2008-2009 global financial crisis.

Job conditions at large companies deteriorated from the second quarter of last year and began to contract from the first three months of this year. In the second quarter, the losses widened from 18,000 in the first quarter.

In contrast, workplaces of four or fewer staff added 147,000 in the second quarter, accelerating from the addition of 125,000 in the first quarter and 23,000 in the fourth quarter. Until the third quarter of last year, jobs had been contracting in such small companies.

Job conditions in large companies worsened from last year due to layoffs in shipping and shipbuilding sector. The financial sector shed jobs due to protracted slowdown in domestic demand and spread of automation that replaced simple human task in office work.

The redundant workers found jobs in smaller places or became self-employed. The payroll at the manufacturing sector slipped from the third quarter, while the number of self-employers increased from then.

By Kim Se-woong

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