Job Growth Halved in One Year Due to 'Corona Shock'... Employment Insurance Up 1.9%

Ministry of Employment Announces 'March Employment Administration Statistics'
Deputy Minister Im: "Service Sector Growth Slows"
Unemployment Benefits 898.2 Billion Won... Another Record High

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] Last month, the number of employment insurance subscribers increased by only 1.9% (253,000 people) compared to the same month last year. Compared to the 525,000 increase in March last year, the job growth rate has halved in just one year. It is analyzed that service sector jobs were directly hit due to the impact of the novel coronavirus infection (COVID-19).

Lim Seo-jung, Vice Minister of the Ministry of Employment and Labor, said at the 'March Employment Administration Statistics' briefing held at the Government Sejong Complex on the 13th, "Economic activities are shrinking due to the impact of COVID-19, and employment is also being affected," adding, "We can confirm that the impact is also reflected in the March employment administration statistics."

Last month, the number of employment insurance subscribers was 13.76 million, an increase of only 1.9% (253,000 people) compared to the same month last year. This is a significant slowdown compared to the 526,000 increase in employment insurance subscribers in March last year.

Vice Minister Lim explained, "The main reasons are the slowdown in growth in the service sector such as accommodation and food services, wholesale and retail, and educational services due to social distancing measures like refraining from going out, minimizing gatherings, and school reopening delays caused by the spread of COVID-19."

The number of employment insurance subscribers in the service sector increased by 273,000 compared to the same month last year, while manufacturing decreased by 31,000. Specifically, in the service sector, most industries such as health and welfare (108,000), accommodation and food services (26,000), and educational services (18,000) saw a decrease in the growth rate.

Manufacturing has been in the negative for seven consecutive months since September last year. Industries such as automobiles, electronic communications, and metal processing continued to decline. However, some sectors like food products, pharmaceuticals, and medical precision instruments maintained growth due to production and export booms in response to COVID-19.

By workplace size, the growth rate slowed or decreased mainly in workplaces with fewer than 300 employees; by age group, it slowed or decreased among those aged 60 and over and youth; and by gender, it slowed or decreased more among women than men.

Meanwhile, last month's unemployment benefit payments reached a record high again at 898.2 billion won following the previous month. The total number of unemployment benefit recipients was 608,000, of which 156,000 were new applicants.

By industry, new unemployment benefit applicants were ranked as follows: health and welfare (353,000), manufacturing (191,000), construction (156,000), wholesale and retail (148,000), and educational services (146,000).

Vice Minister Lim stated, "The increase in unemployment benefit payments is mostly due to strengthened guarantees and an increase in working days," adding, "The impact of the increase in new applicants is considered to be partial."

He continued, "The government will closely monitor the employment situation to minimize the negative impact of COVID-19 on employment and protect people's jobs," and said, "We will continue to prepare additional employment stability measures for vulnerable groups in the job market."

This content was produced with the assistance of AI translation services.