Domestic company employment “Recovery to pre-Corona level is still…”

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Source = National Federation of Businesses

In 2021, two years after the outbreak of COVID-19, the number of employees of listed companies still did not recover to the level of 2019, which was before Corona 19. is becoming

The National Federation of Entrepreneurs (hereinafter referred to as the Federation of Korean Industries) surveyed the number of employees of 1,874 stocks of non-financial KOSPI and KOSDAQ listed companies as of 2018-2021. As a result, as of 2021, 4 out of 10 listed companies (43.1%, 808 companies) had fewer employees compared to the previous year. The proportion of companies with a decrease in the number of employees was found to be slightly higher in the KOSDAQ market than in the KOSPI market. In the case of the KOSPI market, 294 companies (42.2%) out of 696 companies surveyed were the companies whose number of employees decreased last year, and 514 companies (43.6%) out of 1,178 companies surveyed in the KOSDAQ market.

Source = National Federation of Businesses
Source = National Federation of Businesses

As the FKI analyzed the size of listed companies with reduced staff in the last 3 years (2019-2021), the proportion of listed companies with reduced staff in 2021 was 43.1% (808 companies), 8.9%p (166 companies) from 52.0% (974 companies) in 2020↓ ) was found to decrease. Compared with 44.3% (830 companies) in 2019, it was 1.2%p (22 companies↓) less. In response, the FKI analyzed, “The decrease in the number of listed companies with fewer employees last year compared to 2020 is due to the base effect caused by the surge in demand suppressed by COVID-19 and the impact of earnings improvement such as the boom in non-face-to-face industries.”

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However, when looking at the number of employees of all listed companies, it was found that they have not yet recovered to the pre-COVID-19 pandemic level. The number of employees of listed companies last year stood at 1.483,000, an increase of 14,000 from 2020 (1469,000), but 14 million less than in 2019 (1497,000).

Source = National Federation of Businesses
Source = National Federation of Businesses

3 out of 10 listed companies reduce the number of employees for 2 consecutive years after the spread of COVID-19

According to a survey by the FKI, 3 out of 10 listed companies (26.7%, 500 companies) decreased their number of employees for two consecutive years (2020-2021) after the full-fledged spread of COVID-19, and the proportion of them was KOSPI listed companies (29.0%, 202 companies) was higher than that of KOSDAQ listed companies (25.3%, 298 companies). The number of employees at the 500 listed companies, where the number of employees decreased for two consecutive years, was 436,000 as of 2021, a decrease of 720,000 compared to 2019 (508,000), before the COVID-19 outbreak.

In response, the FKI said, “Companies often use reduction in the number of employees as a last resort to overcome a business crisis. ” he analyzed.

Source = National Federation of Businesses
Source = National Federation of Businesses

Sales, operating profit, and employment ‘triple blow’ 210 listed companies

Last year, 1 out of 10 listed companies (11.2%, 210) suffered from ‘third-hand’, in which not only the number of employees but also sales and operating profit decreased at the same time. The proportion of KOSDAQ listed companies (12.1%, 143 companies) was higher than that of KOSPI listed companies (9.6%, 67 companies). The FKI said, “These listed companies are cases where both growth and profitability have deteriorated, so if it leads to insolvency, it can put a huge burden on the job market.”

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“It is too early to judge that the increase in the total number of employees at listed companies last year is due to the large base effect of the pandemic shock,” said Choo Gwang-ho, head of the FKI economic division. He then emphasized, “The government should provide policy support such as deregulation in the labor and industry sectors and expansion of tax support so that companies can overcome uncertainty and actively expand investment and employment.”

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