"How Much Longer Can We Endure?" Tears of Non-Regular Workers in Government Support Blind Spots

80.8% of Office Workers "Have Never Received Unemployment Benefits"
Civic Group "No Reason to Question Employment Insurance Enrollment During Disasters"
Expert "Employment Insurance System Should Be Reformed Focusing on Unemployment Benefits"

On the morning of the 1st of last month, citizens wearing masks are commuting and moving at Yeouido Station in Yeongdeungpo-gu, Seoul. Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] # Recently, Mr. Shin, who was laid off from his job, is struggling with financial difficulties as he cannot receive unemployment benefits. This is because he was not enrolled in employment insurance and thus did not meet the eligibility criteria for unemployment benefits. Mr. Shin said, "After several months of unpaid leave following the outbreak of the novel coronavirus disease (COVID-19), I was eventually laid off. Although my job loss was due to COVID-19, I am not eligible for support." He added, "I have no idea when I will be re-employed, and I feel helpless about how to endure this situation."

As the COVID-19 pandemic prolongs, the number of workers suffering from unpaid leave, reduced working hours, layoffs, and contract terminations is increasing.

In particular, non-regular workers are identified as being more severely affected. Although the government has decided to link income information from taxation and employment insurance, there are still many workers left in blind spots. Experts have suggested a complete overhaul of the existing employment insurance system itself.

As the pleas of workers unable to properly receive unemployment benefits continue, the government announced it will prepare a 'Roadmap to Eliminate Employment Insurance Blind Spots' by the end of the year. The 'Tax-Employment Insurance Income Information Linkage Promotion TF,' responsible for this task, was launched on the 19th. Civic groups have urged for a swift resolution of the issue. They pointed out that as discussions drag on, the damage caused by COVID-19, including financial hardship, will inevitably worsen.

Kim Yong-beom, First Vice Minister of Strategy and Finance, stated at a related government meeting on eliminating employment insurance blind spots, "We plan to strengthen efforts to properly identify income information of employment insurance coverage targets to prevent omissions in employment insurance enrollment."

He continued, "The TF will prepare measures to expand employment insurance coverage, improve the income information identification system, and facilitate smooth linkage of income information between taxation and employment insurance. We will also devise ways to identify income information for future expanded coverage groups such as special-type workers, and reflect these in the 'Roadmap to Eliminate Employment Insurance Blind Spots' to be announced within this year."

President Moon Jae-in also ordered special measures, including inspections of working conditions for workers in employment insurance blind spots. At a Cabinet meeting held at the Blue House on the 20th, President Moon said, "COVID-19 is pushing workers in blind spots of the system, such as special employment workers, to the edge of survival." He added, "The government has begun including new types of workers such as special-type employment workers, freelancers, and artists in emergency employment support, and is working to expand employment insurance coverage, but it is still insufficient. To effectively reduce blind spots, I hope the government strengthens inspections and labor supervision of vulnerable workers and prepares sustainable measures."

Citizens wearing masks are moving near Gangnam Station in Seoul. Photo by Yonhap News

However, despite these government policies, criticisms continue that employment insurance blind spots are not being resolved. Support such as unemployment benefits and employment retention subsidies cannot be received without enrollment in employment insurance, and many fail to meet eligibility criteria.

Civic groups emphasize the need to provide 'disaster unemployment benefits' regardless of employment insurance enrollment status.

The civic group Workplace Bullying 119 criticized the 'Tax-Employment Insurance Income Information Linkage Promotion TF' on the 20th, saying, "The Moon Jae-in administration has been parroting the phrase 'We will prepare a roadmap by the end of the year' for five months without progress," and added, "In this era of disaster caused by COVID-19, there is no reason to consider employment insurance enrollment status."

The group stated, "Income of all employed persons whose income has decreased due to COVID-19 must be compensated. 'Disaster unemployment benefits' should be provided to workers outside employment insurance such as special employment workers, those in businesses with fewer than four employees who are not enrolled, and small self-employed persons. Measures must be established to ensure that workers illegally not enrolled in employment insurance or those who do not meet unemployment benefit eligibility despite enrollment are not excluded from support."

Earlier research showed that 8 out of 10 workers who experienced job loss did not receive unemployment benefits.

According to a survey conducted by Workplace Bullying 119 last month through the polling agency Embrain Public, targeting 1,000 workers on 'COVID-19 and changes in work life,' 4.3% of regular employees responded that they had lost their jobs against their will. Among non-regular employees, 31.3% answered affirmatively.

Among them, 80.8% were found not to have received unemployment benefits. Respondents cited reasons such as 'not enrolled in insurance' (54.1%), 'enrolled in employment insurance but did not meet unemployment benefit eligibility criteria' (26.2%), and 'met eligibility criteria but classified as voluntary unemployment' (9.8%).

Experts emphasize the need to establish effective measures through reform of the employment insurance system.

Professor Kim Tae-gi of Dankook University’s Department of Economics said, "The employment insurance system should be reformed focusing on unemployment benefits." He added, "Vocational skill development and employment stabilization projects are naturally the government's role. The social safety net should be solid, and it is inappropriate to attach other things to employment insurance."

Professor Kim advised, "The government is proposing plans for nationwide employment insurance. Given that the existing employment insurance fund is depleting, I oppose including non-regular and special employment workers in the existing employment insurance. Measures to enhance the linkage between taxation and employment are needed, as well as further measures beyond that. Only then will it be effective."

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