Accommodation and Food Service Employment Insurance Subscribers Decline for 19 Months... Decrease Rate Slows Down

Unemployment Benefits Payment Amounts to 822.4 Billion Won... Below 1 Trillion Won for 3 Consecutive Months

Kim Young-jung, Director General of Employment Policy, Ministry of Employment and Labor. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Due to the impact of the COVID-19 pandemic, the number of employment insurance subscribers in the accommodation and food service industries has decreased for 19 consecutive months. However, the rate of decline has slowed. The amount paid for job-seeking benefits to the unemployed remained below 1 trillion won for three consecutive months.

According to the labor market trends for November announced by the Ministry of Employment and Labor on the 13th, the number of employment insurance subscribers in the accommodation and food service industries last month was 655,000, a decrease of 3,000 (0.5%) compared to the same month last year.

The number of employment insurance subscribers in the accommodation and food service industries has recorded a negative trend for 19 consecutive months since May last year. The decrease peaked at 59,000 in February this year and has gradually narrowed. This is interpreted as a result of increased domestic travel and changes in quarantine policies.

Last month, the total number of employment insurance subscribers was 14,633,000, an increase of 334,000 (2.3%) compared to the same month last year. The Ministry of Employment and Labor explained, "Thanks to improvements in domestic demand, strong exports, and non-face-to-face and digital transitions, the number of employment insurance subscribers increased in most industries."

However, the increase of 334,000 was the smallest in eight months since March this year (324,000). This is interpreted as due to a base effect caused by a decrease in subscribers in the public administration sector, which had increased due to last year's supplementary budget job projects.

Excluding public administration, the number of subscribers increased by more than 400,000 for seven consecutive months. By sector, last month the number of employment insurance subscribers in manufacturing was 3,627,000, an increase of 92,000 (2.6%) compared to the same month last year. Due to improvements in domestic demand and strong exports, employment insurance subscribers increased in most industries such as electrical equipment, electronic communications, machinery equipment, and automobiles.

Last month, the number of employment insurance subscribers in the service sector, including accommodation and food service, was 10,106,000, an increase of 210,000 (2.1%) compared to the same month last year. This is interpreted as a result of increased demand for non-face-to-face services, COVID-19 vaccinations, and improved consumer sentiment due to eased quarantine measures.

The number of insured persons under employment insurance increased across all age groups. In particular, even among the youth population, which is declining, the number of insured persons increased, centered on publishing, information, and communication industries.

The amount paid last month for job-seeking benefits, which are paid from the employment insurance fund to support the job-seeking activities of the unemployed, was 822.4 billion won. This is 91.3 billion won (10%) less than the same month last year.

The amount paid for job-seeking benefits has remained below 1 trillion won for three consecutive months since September this year.

Last month, the number of beneficiaries of job-seeking benefits was 537,000, a decrease of 68,000 (11.3%) compared to the same month last year.

Kim Young-jung, Director of Employment Policy at the Ministry of Employment and Labor, positively evaluated the improved indicators, saying, "Uncertainties in the quarantine situation remain, and additional difficulties are expected due to worsening global supply disruptions," and added, "We will closely monitor the employment situation."

The labor market trends announced monthly by the Ministry of Employment and Labor are based on regular and temporary workers among employment insurance subscribers, excluding special employment workers, freelancers, self-employed, and ultra-short-time workers.

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