South Korean companies are expected to cut their hiring of new workers by more than 3 percent in 2015 due mainly to a weak recovery of the national economy, a poll showed Sunday.
The survey of 377 companies nationwide with a workforce of 100 or more showed that they plan to reduce their recruitment of new employees by 3.6 percent this year from a year earlier.
Of the companies polled, large companies with 300 workers or more responded that they would slash new hirings by 3.4 percent this year, according to the survey taken by the Korea Employers Federation.
Some 60 percent, the lowest level in five years, answered that they have recruitment plans or have completed the employment of new workers for this year, with 15.5 percent having no plans to hire new workers.
The drop in this year’s corporate hiring was attributed mainly to the slow recovery of the South Korean economy.
Last week, the nation’s central bank cut its 2015 growth forecast for the economy to 3.1 percent from an earlier 3.4 percent estimate, citing still flaccid consumer spending and slowing advanced economies.
The KEF said other reasons include new regulations such as the extension of the retirement age to 60 and the inclusion of regular bonuses in ordinary wages that increase salary costs.
Ordinary wages are used as a basis for setting the amount of main allowances like overtime pay, holiday shift pay and paid annual leave. (Yonhap)
