What to do with job-seeking students… 68% of large companies “There is no plan for hiring in the second half of the year or undecided”

As the economic recovery slows due to the 4th COVID-19 pandemic, it is expected to adversely affect the recruitment market in the second half of this year. Seven out of ten large companies have either failed to establish a new hiring plan in the second half of this year or decided not to hire them.

According to the Korea Economic Research Institute on the 5th, 67.8% of large corporations answered that they had not established a new hiring plan in the second half of this year or would not hire a single person in a recent survey of ‘New Recruitment Plan for the second half of 2021’ of 500 companies in sales.

54.5% of the responding companies did not plan to hire new employees, and 13.3% decided not to hire new employees.

Regarding this, the Korea Economic Research Institute said, “The proportion of companies that do not have or did not have a new hiring plan or have not established a plan decreased slightly from the same period last year (74.2%), but this was due to the base effect due to the poor domestic and foreign economic conditions due to COVID-19 last year.” Considering the momentum of the pandemic, the cold wave in the recruitment market is expected to continue.”

In this survey, which was commissioned by Hankyung-yeon to Research & Research, an opinion polling agency, the responding companies did not actively recruit new employees because of the reasons why the economy and industry deteriorated due to the prolonged Corona 19 (32.4%), and other factors such as lack of demand within the company (32.4%). 32.3%) △ Difficulty in restructuring existing personnel due to employment rigidity (14.7%).

In particular, 90.9% of the companies that gave other opinions cited ‘lack of demand within the company’ as the reason, and 29.4% of the companies that responded showed that the demand for new hires was insignificant.

New recruitment plan for top 500 companies in the second half of 2021.[자료=한국경제연구원 제공]

Changes in recruitment patterns are also expected to be maintained. When asked to predict the changes in the recruitment market in the second half of this year, 24.3% of companies answered that ‘the introduction of non-face-to-face recruitment will increase’. It was followed by strengthening the hiring of experienced workers (22.5%) and increasing the proportion of casual hiring (20.3%).

In fact, according to the results of this survey, the proportion of companies that used casual hiring in this year’s new college graduates was 63.6%, an increase of 11.1%p from last year’s (52.5%). The proportion of companies that have used or are considering non-face-to-face recruitment also stood at 71.1%, up 16.9%p from last year (54.2%).

As the importance of ESG (Environmental, Social and Governance) management is on the rise, the movement of companies to hire related talent is also notable.

According to the Korea Economic Daily, 25.6% of companies plan to hire ESG-related talents in the second half of this year. This is an increase of 11.1%p from the first half when 14.5% answered “yes” to the same question.

However, among the companies that said they plan to hire ESG-related talent, 51.6% of companies said that they would make less than 2% of the total hiring volume.

In this survey, companies formed a consensus on the need for deregulation and support for the industry in order to expand the number of new college graduates.

Of the companies participating in the survey, 38.8% chose ‘relaxation of corporate regulations such as labor and industry’ as the policy that the government and the National Assembly should focus on to expand the recruitment of new college graduates. Support for nurturing new industry growth engines (25.6%) and expanding benefits for companies that increase employment (24.0%) were also identified as major tasks.

Choo Gwang-ho, head of economic policy at the Korea Economic Research Institute, said, “The youth employment market is still in a fog as uncertainty about the recovery of the real economy has increased due to the recent re-spread of COVID-19. We need to focus our efforts on expanding their employment capacity,” he said.



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