Big businesses in South Korea hold off hiring plans

Six out of 10 big businesses in South Korea either have no hiring plans or have yet to finalise them for the rest of 2022.
By: | September 7, 2022

In a survey of 121 big companies by the Federation of Korean Industries this August, 62% said they have not yet come up with hiring plans or had no hiring plans for the latter half of 2022. The proportion of businesses with no recruitment plans at all increased from 13.3% to 17.4%. 

Asked why they are reluctant to hire, 30% said they do not need additional staff, 20% pointed to their financial difficulties, and 12% cited the worsening economy due to the coronavirus pandemic and global supply chain disruptions. About 12% said it is difficult to find skilled workers.

Skyrocketing inflation, rising interest rates and the weak Korean won had a negative effect on companies’ plans to hire new employees. Some 32.2% said their recruitment plans shrank because of these factors.

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Companies’ preference for experienced staff is becoming more pronounced because they can immediately be put to work. Businesses said they will hire only experienced workers for one-third of entry-level jobs, up 6.1 percentage points compared to the first half of the year, according to The Chosunilbo.