April Job-Seeker's Allowance Payments Near 1 Trillion Won... "Total Spending Expected to Reach 12 Trillion Won This Year"

Ministry of Employment Announces 'April Labor Market Trends Based on Employment Administration Statistics'

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] Last month, due to the impact of the novel coronavirus disease (COVID-19), the amount paid for job-seeking benefits nearly reached 1 trillion won, setting a new record high once again.

According to the labor market trends announced by the Ministry of Employment and Labor on the 11th, the amount paid for job-seeking benefits in April reached 993.3 billion won, marking an all-time high. The payment amount recorded consecutive record highs with 781.9 billion won in February and 898.2 billion won in March, before nearly reaching 1 trillion won last month.

The number of beneficiaries of job-seeking benefits last month surged by 130,000 compared to the same month last year, reaching 651,000, and the amount received per person was calculated at 1.526 million won.

The number of new applicants for job-seeking benefits was 129,000, an increase of 32,000 compared to April last year. By industry, manufacturing had the highest number of new applicants at 22,000. This was followed by wholesale and retail (16,300), business services (15,700), health and welfare (13,900), construction (13,700), and accommodation and food services (12,700).

Kwon Ki-seop, Director of Employment Policy at the Ministry of Employment and Labor, stated, "It is expected that the total expenditure on job-seeking benefits this year will be in the high 12 trillion won range," adding, "The budget for this year reflected the high 9 trillion won range, but it seems it will exceed that. It is true that the spending is happening faster and more than expected." He further added, "The budget for job-seeking benefit expenditures should be reflected in the third supplementary budget bill."

Due to the impact of COVID-19, new hiring has contracted, further slowing the growth of employment insurance subscribers.

Last month, the number of employment insurance subscribers was 13.775 million, an increase of 163,000 (1.2%) compared to the same month last year. The number of subscribers increased by 376,000 in February and 253,000 in March, but the increase slowed to the 100,000 range in April.

In particular, the decline in manufacturing jobs is intensifying. Last month, the number of employment insurance subscribers in manufacturing decreased by 40,000 compared to the previous year, marking the largest decline since the survey began. The downward trend has continued for eight consecutive months since September last year, with decreases of 27,000 in February and 31,000 in March, and the decline widened further last month.

Within manufacturing, decreases continue in automobiles (-7,300), electronics and telecommunications (-7,300), and metal processing (-5,800). Last month, the number of employment insurance subscribers in the food manufacturing industry decreased by 800, turning negative. This is analyzed to be due to expanded automation and reduced on-site promotions.

The number of employment insurance subscribers in the service industry was 9.382 million, an increase of 192,000 compared to the same month last year, but the growth slowed compared to the previous month (273,000).

In most service sectors such as health and welfare (9,400), accommodation and food services (200), and education services (500), the increase slowed significantly, while business services (-26,000) and associations and personal services (-6,000) saw an expanded decrease.

Meanwhile, by gender, male subscribers increased by 59,000 compared to the same month last year, and female subscribers increased by 104,000. By age group, the youth under 29, who experienced a reduction in new hires and part-time jobs due to COVID-19, decreased by 47,000. This is a further increase in the decline following the negative turn in March (-17,000).

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