[Infostock Daily= Reporter Lee Kang-wook] A study found that employment shocks from new coronavirus infections (Corona 19 or COVID-19) will appear in earnest after 2Q.
The Korea Development Institute (KDI) said in a report on the 6th that the contraction in employment among young people from the service industry will spread to all industries including manufacturing industries after the second quarter due to the global economic downturn.
In the meantime, if the shock is similar to that of the global financial crisis in the past, the employment rate of young people will decrease by 1% and the number of employed people will decrease by 100,000.
In the first and second quarters of 2009, during the global financial crisis, the employment rate of young people and 30s decreased by more than 2 percentage points from the same period last year.
The report pointed out that young people who are in the stage of entering the labor market, such as job search, may continue to lose wages due to lack of experience, especially as the unemployed state becomes longer.
In addition, if the job choice in the early days of the career is restricted, the future career development will be hindered, and the negative impact of Corona 19 will not be limited in the short term.
Based on the previous study, it is estimated that if the first job is one year late, the wage for the first 10 years after the first job will be reduced by an average of 4 ~ 8% per year compared to the same age.
The report explained that the negative impact on the employment of young people during the financial crisis and the global financial crisis lasted at least 10 years and did not disappear for a lifetime.
In addition, the report advised that it is important to support the vulnerable groups in the blind spot of unemployment benefits and welfare systems in employment policies, and that complementary measures that do not exclude unemployed youth are urgent.
Reporter Lee Kang-wook gaguzi@naver.com
