Abstract

This study looked at how COVID-19 has affected employment by industry, region, and firm size. Employment data of 28,142 companies for 6 years from 2016 to 2021 provided by NICE Information Service was used. First, it was found that employment decreased after COVID-19 compared to before COVID-19 in manufacturing, wholesale and retail, lodging and restaurant, transportation and warehousing (including air transport), information and communication, educational service, and associations. However, there was no difference in employment growth rates before and after COVID-19 in agriculture, forestry and fisheries, mining, electricity gas, water and sewage, construction, finance and insurance, real estate, professional science and business facilities, health and social services, and arts and sports. Second, employment decreased in Seoul, Gangwon, Chungbuk, Gyeonggi, Gyeongnam, and Daegu. In particular, negative (-) effects were found in Seoul (significance level 5%) and Gyeonggi (significance level 1%). This is because industry and population are concentrated in the metropolitan area (Seoul and Gyeonggi), so Corona 19 has had a worse impact on industries and confirmed cases than other regions, and therefore, it seems that companies have reduced employment. In the rest of the region, there was no difference in employment before and after COVID-19. Third, it was found that both large companies and small and medium-sized enterprises (SMEs) have reduced employment after COVID-19. Due to human and material restrictions between countries, conglomerates and small and medium-sized enterprises (SMEs) have been affected in many ways by supply and demand of raw materials and restrictions on parts. Therefore, it seems that both large enterprises and SMEs have reduced employment by affecting environmental uncertainty and crisis.

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