Unemployment Benefits Exceed 1 Trillion Won for Four Consecutive Months... 90,000 New Applicants Last Month

Ministry of Employment Announces 'August Labor Market'... 1.0974 Trillion Won Paid in Unemployment Benefits
Payment Amount and Number of Recipients, Previously at Record Highs, Decrease Compared to Previous Month
Employment Insurance Subscribers Increase by 260,000... Improvement Trend Since May Low
'Public Administration' Jobs Surge by 130,000 in Government and Local Government Job Projects

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Due to the impact of the novel coronavirus infection (COVID-19), the amount paid for unemployment benefits (job-seeking benefits) exceeded 1 trillion won again last month. As the prolonged COVID-19 crisis continues to destabilize the labor market, the payment amount for job-seeking benefits has exceeded 1 trillion won for four consecutive months.

According to the "August Labor Market Trends" announced by the Ministry of Employment and Labor on the 7th, the amount paid for job-seeking benefits last month was 1.0974 trillion won, an increase of 371.8 billion won (51.2%) compared to the same month last year. Following May (1.0162 trillion won), when it first exceeded 1 trillion won, the payment amount has remained above 1 trillion won for four consecutive months.

Job-seeking benefits are allowances paid from the employment insurance fund by the government to support the job-seeking activities of unemployed individuals. They constitute the majority of unemployment benefits and are commonly referred to as unemployment benefits. The payment amount for job-seeking benefits has been breaking records since the beginning of this year when the spread of COVID-19 intensified.

However, last month's payment amount for job-seeking benefits decreased by 91.1 billion won compared to the previous month, halting the record-breaking streak. The number of new applicants for job-seeking benefits also decreased to 90,000, down from 114,000 in July. The number of recipients of job-seeking benefits peaked at 731,000 in July but dropped to 705,000 last month.

The number of employment insurance subscribers has been gradually improving since hitting a low point in May. Last month, the number of employment insurance subscribers reached 14.019 million, an increase of 262,000 compared to the same month last year. The increase in employment insurance subscribers had fallen to 155,000 in May due to the impact of COVID-19 but recovered to the 200,000 range last month.

By industry, the service sector increased by 314,000 compared to the same month last year, while manufacturing decreased by 63,000. Employment insurance subscribers in the manufacturing sector, which plays a key role in supporting the economy, have decreased for 12 consecutive months. However, the decrease was slightly less than the previous month (-65,000).

Within manufacturing, the electronics and telecommunications (-12,800), automobile (-10,700), metal processing (-6,900), and machinery equipment (-6,100) sectors saw significant decreases. The electronics and telecommunications sector was affected by the relocation of production lines overseas and restructuring, while the automobile sector was impacted by overseas sales slumps and production declines due to COVID-19. The decrease was larger in automobile parts manufacturing (-9,200) than in finished vehicle manufacturing (-1,400).

The textile sector saw a reduced decrease (-400) due to increased production of other fabric products such as masks, and the pharmaceutical and medical device sectors increased by 3,500 and 800 respectively, influenced by strong exports and increased domestic demand.

The number of employment insurance subscribers in the service sector was 9.647 million, an increase of 314,000 compared to August last year. The expansion of government and local government-led job projects caused a surge of 133,400 in public administration, leading the increase in employment insurance subscribers. Although the health and welfare sector also increased by 107,000 due to rising demand, sectors such as business services (-18,000), accommodation and food services (-5,000), and arts and sports (-3,300) remain difficult due to the impact of COVID-19.

Looking at the increase in employment insurance subscribers by gender, women increased by 182,000 and men by 80,000. By age group, those under 29 and those in their 30s decreased by 59,000 and 52,000 respectively, but other age groups saw increases. In particular, those aged 60 and over increased significantly by 208,000.

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