July Employment Insurance Subscribers Increase by 485,000... Largest Growth in 1 Year and 9 Months

Labor Market Trends in July 2021

Source: Ministry of Employment and Labor

[Sejong=Asia Economy Reporter Son Seon-hee] The number of employment insurance subscribers increased by 485,000 last month. This is the largest monthly increase in 1 year and 9 months since October 2019 (511,000). The number of unemployment benefit recipients last month was 679,000, and the payment amount exceeded 1 trillion won for six consecutive months.

According to the "July 2021 Labor Market Trends" announced by the Ministry of Employment and Labor on the 9th, the number of employment insurance subscribers last month was 14,393,000, an increase of 485,000 compared to the same month last year. Since January this year, the monthly increase in subscribers has expanded for six consecutive months.

This appears to reflect the base effect due to the strong performance of exports and IT businesses in the first half of the year, as well as the poor economic conditions during the COVID-19 outbreak period last year. The number of subscribers in manufacturing industries such as automobiles, metal processing, and electrical equipment was 3,595,000, an increase of 79,000 compared to the same month last year.

Kim Young-jung, Director of Employment Policy at the Ministry of Employment and Labor, explained, "The number of manufacturing subscribers has been increasing since January this year, and the increase is expanding. The increase in 'food products' continues due to the rise in single-person households and increased consumption of convenience foods influenced by COVID-19." However, he added, "'Other transportation equipment,' which includes shipbuilding, continues to decline due to the decrease in orders last year."

The service industry also saw an improvement in the increase rate in most sectors, with the number of employment insurance subscribers reaching 9,910,000 last month, an increase of 377,000 compared to a year ago. Non-face-to-face sectors such as online shopping and delivery increased, but face-to-face service industries like transportation and accommodation/food services, which were hit hard by COVID-19, remained sluggish.

By gender, the number of male subscribers was 8,084,000, an increase of 215,000 compared to the same month last year, and female subscribers were 6,309,000, an increase of 270,000.

By age group, those aged 60 and over increased the most by 205,000, followed by those in their 50s with 133,000, under 29 with 106,000, and those in their 40s with 44,000. Those in their 30s were the only age group to decrease by 2,000, which the Ministry of Employment and Labor explained as due to the overall population decline.

The total number of unemployment benefit recipients last month was 679,000, with benefit payments amounting to 1.0393 trillion won. New applicants numbered 106,000, a decrease of 8,000 compared to the same month last year. Unemployment benefits are paid from the employment insurance fund to support job-seeking activities of the unemployed.

Director Kim said about the overall labor market situation last month, "The improvement trend continues due to factors such as strong exports," but added, "However, employment insurance administrative statistics target regular and temporary workers, and there is a time lag between hiring/leaving dates and employment insurance reporting, so the impact of the fourth wave of COVID-19 and strengthened social distancing measures does not seem to be reflected yet." He added, "We will closely monitor the potential employment shock caused by the fourth wave of COVID-19 and actively consider additional employment measures if necessary."

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