Jobseekers may have to brace for tough year

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Jobseekers may have to brace for tough year

Data from the Ministry of SMEs and Startups released on Monday show the decrease in startup funds. [MINISTRY OF SMES AND STARTUPS]

Data from the Ministry of SMEs and Startups released on Monday show the decrease in startup funds. [MINISTRY OF SMES AND STARTUPS]

 
The year of 2023 will be another tough year for job seekers, even experienced workers, as companies are reducing the number of hires sharply amid an economic slump.
 
"I often received scout offers when I was working at my previous company," said a 40-year-old man who left a major electronics company a month ago.
 
"But recently, there aren't any notable offers."
 
Finding a new job was least of his concerns, as his resumé was full of experiences in leading logistics advancement and strategic planning. He also had good references. But for almost a month, he hasn't even been able to land an interview.
 
The labor market was a buffet for experienced workers last year. Headhunting agency GoodCareer received 2,100 headhunting requests, and the industry in general saw a nearly 20 percent increase in sales on year.
 
However, this year's number of scout requests is expected to be at 60 percent of last year's level, as the IT sector and foreign affiliates, which led the experienced labor market, decide not to recruit as much.
 
"The number of headhunting requests in January was just 20 percent of that from the same period last year, and the number of companies that requested to headhunt was halved," said Park Yong-ran, who runs a headhunting agency Dragon HR. "The number of requests plummeted from not only conglomerates and tech companies such as Naver, Kakao, Line and Coupang, but also from start-ups."
 
Candidates who would have easily had several job interviews last year are finding it difficult to sit for even just one in recent weeks, and search requests from start-ups are close to none, according to Park.
 
Experts in the headhunting industry say this shift comes as companies that grew during the pandemic take a rest from bulking up as they anticipate an economic slump.
 
"We have 200 less people but reported better earnings," a source from an anonymous retail company that employed more than 900 workers during the pandemic said.
 
"We plan to only fill in the vacancies."
 
The shrink in funds invested in IT and start-up companies adds to the conservative recruiting.
 
Start-ups gathered 1.33 trillion won ($1.08 billion) in funds in the fourth quarter, down 43.9 percent on year, according to a report by the Ministry of SMEs and Startups released on Monday.
 
"The cold wave slashing the start-up business is seen as another factor freezing the labor market," said Lee Young-mi, executive vice president of CareerCare, a search firm.
  
"Even the 'S-rank' talents that are relatively steady in demand are locked up with terms of contracts such as stock options," Lee added.
 
IT companies used to hire aggressively during the pandemic. Platform operator Kakao had a total of 2,961 employees as of June 2021, but hired 21.7 percent more to reach 3,603 in June 2022. Portal operator Naver's employee population grew 15.3 percent from 4,235 to 4,885 over the same period.

BY LEE SOO-KI, KIM MIN-SANG [sohn.dongjoo@joongang.co.kr]
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