Nearly 3,000 employees at local banks left the industry mainly due to layoffs in 2016 amid the challenging environment for profitability, industry data showed Monday.

The banking industry’s move to cut jobs is expected to continue this year, as it faces new competition against financial technology companies and internet-only banks, observers say.

According to data from the Financial Supervisory Service, the number of employees at banks declined by 1,507 to 115,516 at the end of September compared to the end of 2015.

Out of the 1,507, about one-third or 551 came from Kookmin Bank, which has about 20,000 employees in total.

Other lenders KEB Hana Bank, Woori Bank, NH Bank and Shinhan Bank also cut 271, 243, 169 and 87 jobs, respectively, during the nine months.

However, state-run policy lender Korea Development Bank hardly cut any jobs, only reducing its total workforce of 3,508 staff by 12 jobs.

During the October-December period, KEB Hana, NH Bank and Standard Chartered Bank Korea cut a combined 1,300 jobs.

With the US Federal Reserve’s expected rate hikes and stricter risk management on the high level of household debt, the banking industry is expected to keep reducing its workforce this year.

Kookmin Bank recently said it will let 2,800 employees leave the company under a voluntary early retirement program this month. Shinhan and Woori may follow suit, observers said.

The economic downturn is also hitting the self-employed.

According to data from the National Tax Service, one-third of the newly self-employed last year had to shut down their businesses due to sluggish consumption.

Last year, about 3,000 people on average opened a new business daily, while about 2,000 people shut down their new business daily, the data showed.

Of the new businesses opened last year, 74 percent were concentrated in four sectors -- services, real estate/leasing, retail and restaurant -- where no special skills are required and market entry is relatively easy.

By Kim Yoon-mi (yoonmi@heraldcorp.com)