Hiring managers predict job market will worsen in second half

The job market is expected to worsen in the second half of this year, especially at small and mid-sized companies, as uncertainty over the impact of the Covid-19 pandemic continues.

Job seekers wait in line to take SK Group’s recruitment test at Seokyeong University in Seongbuk-dong, northern Seoul, in May. [YONHAP]

The job market is expected to worsen in the second half of this year, especially at small and mid-sized companies, as uncertainty over the impact of the Covid-19 pandemic continues.

According to data from job portal site Job Korea, 43.8 percent of personnel from human resources (HR) departments at different companies surveyed projected the job market in the second half of this year to worsen, while 36.8 percent said the situation will be similar to the first half. Only 19.4 percent of survey participants said the number of jobs will increase.

A total of 315 HR representatives took part in the survey, conducted from July 27 through July 30.

Larger conglomerates tended toward a brighter forecast, with 41.5 percent of respondents from chaebol predicting that the job market will improve in the second half.

At medium and smaller companies, the outlook was much more negative, with 47.1 percent of respondents from medium-sized companies expecting the situation to worsen and 45.6 percent from smaller businesses saying the same.

Projections seem to be based on whether respondents expect issues stemming from the Covid-19 pandemic to end or not.

Of those who cast positive projections for the job market, 59 percent also said they think the coronavirus pandemic is likely to end soon. Of those with a negative outlook, 75.4 percent said they think the pandemic is unlikely to end soon.

“Conglomerates that employ larger numbers of people are expected to continue the recruitment process, while small and mid-sized companies that are [more] sensitive to economic changes have yet to determine their recruitment plans,” said Byeon Ji-seong, a manager at Job Korea.

BY JIN MIN-JI [jin.minji@joongang.co.kr]