- Tram Ho
The strong outbreak of Covid-19 is devastating many economies as well as causing millions of workers around the world to lose their jobs. However, in Korea and Japan, the unemployment rate is very low. So what helped these two economies maintain employment for workers?
According to Bloomberg, the mass ban and strict regulations in labor law have made businesses in South Korea and Japan “hard to touch” workers during the season, thereby keeping the unemployment rate low. low karma.
Besides, the culture of giving a lifetime to a company, considering the business as a home in Korea and Japan also contributes to the extremely low rate of job quitting. The close association between enterprises and workers makes them more resilient to fight the pandemic.
Asian economies have lower unemployment rates than the world during the crisis
In February 2020, Korea’s unemployment rate even dropped to 3.3% while in Japan it remained at 2.4% despite the outbreak.
At many large corporations such as Samsung, Sony, Hyundai or Panasonic, it’s normal for employees to devote their entire lives to the business.
In fact, Korea or Japan have experienced similar things before. During the global financial crisis of 2008, both economies had a much lower unemployment rate than the US and the Eurozone.
By closely associating employees with businesses, employees are not only guaranteed life but also motivate people to join hands in building the company, helping the economy recover.
“The common culture of businesses of these countries is to do everything possible to avoid having to fire employees and everyone in the company is imbued with the idea that we are all a family in difficult times like today. Companies with such a culture can help the community better by limiting employee layoffs as well as protecting workers from hardship, “said economist Lloyd Chan of Oxford Economics.
Even in China, workers are more secure than Europe and the US before the wave of layoffs due to the economic crisis caused by the pandemic. However, Bloomberg said that the model in China is different from South Korea or Japan when the government can intervene in many companies. In addition, many state-owned corporations are also the backbone of the economy, so the Beijing government can intervene to protect the working class.
South Korea, Japan and China recovered faster than the West after the 2008 crisis
From being criticized to being worth learning in a time of crisis
In normal times, the difficult dismissal of employees is considered by many experts to affect productivity as well as job performance because it is more difficult for managers to restructure the company and use it. Disciplined forms to boost output.
Even this view has gradually been popularized in Korea and Japan as more and more young people are no longer interested in the idea of giving life to businesses like the previous generation did.
In 2019, the World Economic Forum (WEF) recommended that both Korea and Japan improve their labor market mobility, thereby allowing businesses to dismiss their employees more easily.
Ironically, the very lifelong Korean and Japanese lifelong culture is now protecting workers from the economic crisis brought about by the Covis-19 epidemic.
While Japanese businesses apply many policies to help employees stick with the company, the majority of Korean corporations use the method of seniority pay (Two Tier System) to retain employees. Accordingly, new workers, part-time or inexperienced workers will receive lower salaries than former employees.
During the 2008 financial crisis, the seniority pay policy enabled corporations like Toyota to lay off temporary workers instead of loyal employees who lived and died with the company.
Before the Covid-19 crisis, the Korean labor market was strongly criticized by economic experts and investors for a lifelong dedication culture. Many jobs or positions in businesses, the government is likened to “iron rice bowl” due to ensuring the rights of seniority workers. But now, the job security for employees is being supported by governments in many countries.
Nguồn bài viết : Genk