"Unemployment Benefits Recipients in Their 20s Double Compared to Last Year... Focus on COVID-19 Impact"

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The number of young people aged 20 and under who lost their jobs and received unemployment benefits has doubled compared to last year. This highlights the severe employment crisis among the youth caused by the spread of the novel coronavirus infection (COVID-19).

According to the unemployment benefit payment status submitted by the Ministry of Employment and Labor to Jang Cheol-min, a member of the National Assembly's Environment and Labor Committee from the Democratic Party of Korea, on the 7th, the total number of beneficiaries in August increased by 49% compared to the same month last year, while the number of beneficiaries aged 20 and under surged by 99.9%.

Employment instability due to COVID-19 is more concentrated among young people aged 20 and under.

For those in their 30s, the number increased by 39.5% compared to August last year, 44.9% for those in their 40s, 41.3% for those in their 50s, and 44.6% for those aged 60 and above.

The unemployment benefit receipt rate for youth aged 20 and under began to rise sharply from April, when COVID-19 started to significantly impact the economy. In April, the number of beneficiaries increased by 48.3% compared to the same month last year, followed by 70.7% in May, 90.2% in June, 92.0% in July, and 99.9% in August.

The main reason for the sharp increase in beneficiaries aged 20 and under is that the labor market where youth are mainly employed is in face-to-face service industries. As the COVID-19 pandemic prolongs and social distancing measures strengthen, difficulties in face-to-face service sectors have expanded, and the employment insurance subscription rate in service industries is high among those in their 20s.

In particular, the number of beneficiaries aged 20 and under in the accommodation and food service industry increased by 138.2% compared to the same month last year. In business support services such as travel agencies, it increased by 112.5%, and in wholesale and retail trade such as marts, it also more than doubled with a 102.2% increase.

Assemblyman Jang stated, "If the youth employment issue is neglected, it will lead to a demographic phenomenon and prolonged unemployment, which will not only reduce national competitiveness but also result in the loss of human capital for the future society," and emphasized, "Urgent measures must be devised for youth employment."

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