After Government Job Programs End... Unemployment Benefits Increase by 100,000 and Job Seekers Surge by 45%

December Labor Market Trends Announced by Ministry of Employment and Labor on the 11th
108,000 New Jobseeker Benefit Applications... Cold Wind in the Employment Market
Employment Insurance Subscriber Growth 'Slows'... Manufacturing Down by 21,000

On the 10th, citizens are entering the unemployment benefits briefing room at the Seoul Employment Welfare Plus Center in Jung-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] In December last year, due to the impact of the novel coronavirus disease (COVID-19) and year-end business closures, the number of new unemployment benefit (job-seeking benefit) applicants recorded over 100,000 again for the first time in five months. The number of job seekers through Worknet surged by 45% compared to the same month last year, highlighting the harsh employment situation.

According to the 'December 2020 Labor Market Trends' announced by the Ministry of Employment and Labor on the 11th, the number of new job-seeking benefit applicants in December last year reached 107,800. It is the first time in five months that the number of new applicants exceeded 100,000. After soaring to 114,000 in July last year, the number had been maintained at 80,000 to 90,000 since August.

By industry, new job-seeking benefit applications were high in manufacturing (14,700), construction (14,600), public administration (13,900), wholesale and retail (11,500), and business services (11,400).

The total number of job-seeking benefit recipients was 600,000, with total benefit payments amounting to 956.6 billion KRW, and the average benefit amount per recipient was 1.39 million KRW.

Growth in Employment Insurance Subscribers Slows... Decline Widens in 30s Age Group

In December last year, the number of employment insurance subscribers was 14.08 million, an increase of 239,000 compared to the same month the previous year, showing a significant slowdown in growth.

The number of employment insurance subscribers peaked in May last year with an increase of 155,000 compared to the same month the previous year, then continued to rise steadily. In October and November last year, the numbers increased by 365,000 and 394,000 respectively, showing signs of recovery before turning downward again.

By age group, the increase slowed for those under 29 (2,000), in their 40s (24,000), 50s (97,000), and 60 and above (171,000), while the decrease widened for those in their 30s (-56,000). Male subscribers increased by 84,000, and female subscribers by 155,000.

In December last year, employment insurance subscribers in manufacturing decreased by 21,000 compared to the same month the previous year. After hitting a low point of -65,000 in July last year, the rate of decline has been gradually shrinking.

Looking at detailed manufacturing sectors, electrical equipment (920), food products (800), medical precision instruments (800), electronics and telecommunications (400), and machinery equipment (100) turned positive from negative in November last year. However, sectors such as automobiles (-4,700), shipbuilding and other transportation equipment (-8,300), chemical products (-6,900), and clothing and fur (-5,500) saw declines.

The number of employment insurance subscribers in the service sector was 9.666 million, an increase of 241,000 compared to the same month last year. This is analyzed to be influenced by the third wave of COVID-19, year-end contract expirations, and business closures.

By industry, accommodation and food services (-34,000), business services (-14,000), and transportation (-13,000) saw an expansion in the decline. In particular, with the end of government job projects created through the supplementary budget, the increase in public administration (62,000) significantly slowed. Compared to increases of 199,000 in October and 205,000 in November last year, the growth rate shrank to about one-third.

The annual number of employment insurance subscribers last year was 13.948 million, increasing by only 274,000 compared to the previous year due to the impact of COVID-19. This is the lowest increase since 2004 (259,000).

Worknet New Job Seekers Increase 45%... Youth Under 29 Up 88.3%

As the employment market cooled, the number of people seeking jobs on Worknet (the Ministry of Employment and Labor's job search website) surged significantly. Especially, youth job-seeking difficulties appeared severe.

In February last year, the number of new job seekers was 473,000, a 45% (147,000) increase compared to the same month the previous year. Among the increased new job seekers, 65,000 were male and 82,000 were female.

By age group, youth under 29 increased by 60,000, a surge of 88.3% compared to the same month last year. Those in their 30s increased by 25,000 (40.3%), 40s by 20,000 (32.2%), 50s by 23,000 (34.0%), and 60 and above by 19,000 (28.4%).

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