Vice Minister Ki Jae: "COVID-19 Unemployment Not Covered by Unemployment Benefits... Mainly Occurs in Blind Spots"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, mentioned the impact of the COVID-19 pandemic on the employment market, stating, "Unemployment is surging, but the majority of it occurs outside the employment insurance system, creating a difficult situation where unemployment benefits do not cover it."

On the 18th, Vice Minister Kim wrote on Facebook, "The number of employed people decreased by 195,000, and compared to the previous month, the decrease reached 700,000, a tsunami-like employment shock. However, the number of unemployment benefit applicants only increased by 31,000 compared to the same month last year," he said.

He explained, "The decrease in the number of employed people in March occurred mainly among temporary and daily workers and self-employed individuals, who are in the blind spots of the employment safety net, rather than among regular workers or other quality jobs," adding, "The COVID-19 crisis revealed the vulnerable aspects of the employment market, and urgent emergency measures are needed."

Regarding the sharp increase in temporary leave workers, he said, "It is evidence that employment retention support funds and other employment market stabilization measures are working," but also emphasized, "Special attention and measures are necessary to prevent temporary leave workers from becoming genuine unemployed in the future."

He continued, "Although everyone is struggling due to the COVID-19 crisis, support is urgently needed as a top priority in sectors such as temporary workers, daily workers, and small self-employed businesses," and pointed out, "There is sufficient justification for significantly increasing the scale of support, and providing a minimum social safety net to those who lost their jobs due to economic shocks is a fundamental responsibility of the state." Regarding support for temporary, daily workers, and self-employed individuals, Vice Minister Kim also described it as "a broad concept of quarantine costs," meaning that beyond emergency disaster support, the state compensates for the opportunity costs of social quarantine.

Furthermore, he stated, "If we do not help those who suffer disproportionately for the public good called 'social distancing,' it will be difficult to sustain 'social distancing' for a long time," emphasizing, "Money is needed for lasting peace, and that money is well worth spending." He added, "Fundamentally, it is urgent to seek systematic alternatives to the unfortunate reality that half of all employed people are in the blind spots of employment insurance."

He also offered suggestions for preparing for the post-COVID era. Vice Minister Kim said, "This shock will last a long time, and until vaccines and treatments are developed, we must also worry about a second wave," and stated, "The pre-COVID era will not return, and we may need to prepare for a new AD (After Disaster) era."

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