Tougher Times for Job Seekers During War

The number of listed firms that are planning to recruit new employees in the second quarter of this year reached only half of last year due to the sluggish global economy, Iraq war and North Korea’s nuclear development program, accordingly to one survey.

Job seekers are expected to have a tougher time since many corporations will not recruit new employees or reduce the number of new recruits due to an uncertain economic outlook and poor performance in the first quarter.

Accordingly to a survey conducted for 318 listed firms by employment specialist Incruit from March 24 to 28, only 94 firms or 29.56% have any plans to recruit new workers in the second quarter. This figure is 53% down from 200 firms last year.

Moreover, 184 corporations or 57.86% do not have any plans to employ new members and 40 companies or 12.58% have yet to decide their recruiting plans.

By industry, the number of firms that have recruiting plans decreased 79.26% in the financial industry which faces restructuring due to plunging stock prices. The number dropped by 65.52% in the restaurant, food and beverage industries, 62.52% in the shipbuilding, machinery, automobile and steel industries. Companies in the electric and electronics, and telecommunications industries also reduced their recruiting plans by 175% and 160% respectively.

However, some corporations in the electric, electronics and telecommunications industries including Anam Electronics, Patsnic, Daewoo Information Systems and Hanbit Soft said they would recruit more employees in their R&D sections. Hyundai Motor Company, Samsung Heavy Industries, and POSCO will also employ new workers as well as distribution companies including Shinsegye Department Store and Lotte Shopping, food and beverage companies including Dong Otsca, Namyang Dairy Products, and pharmaceutical companies including Daewoong Pharmaceutical.

Most corporations said they had already adjusted their employment plans in consideration of the Iraq war and that plans would not change due to the war. In response to the question: “Did your recruiting plans change due to the war?”, 93.1% answered in the negative.

Joong-Hyun Park sanjuck@donga.com