March 08, 2021 11:17
Amid the prolonged economic recession caused by the COVID-19 epidemic, six out of 10 conglomerates either have no hiring plans or have yet to finalize them for the first half of this year.
Twice as many as early last year do not plan to hire new graduates, suggesting that the job market is getting harder to crack with few signs of the epidemic going away.
The Korea Economic Research Institute said on Sunday that a survey of Korea's top 500 companies on their recruitment plans showed that 17.3 percent would not be hiring at all in the first half, compared to 8.8 percent in the same survey last year.
Some 46.3 percent said they have not yet been able to devise hiring plans due to the uncertainty, up from 32.5 percent in the last survey.
Only a third of the companies, or 36.4 percent, decided to hire new employees, but the hiring numbers will mostly be similar to or smaller than last year, with only three out of 10 of them expecting to hire more.
The biggest reason for businesses' reluctance to hire is the economic recession due to the epidemic. About half of the companies said they intended to reduce hiring due to the worsening economy and business conditions at home and abroad. Some 12.8 percent cited the inflexibility of the job market.
"As it is difficult to tell when things will get back to normal, it is natural for companies to cut down on labor costs," said an industry insider.
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