Job Opening-to-Applicant Ratio Hits Post-IMF Low in May... Unemployment Benefit Payments Continue to Rise

Number of Employment Insurance Subscribers Rises by 187,000
Construction Sector Sees 22 Consecutive Months of Decline
Job-Seeking Benefit Recipients Increase by 24,000
Total Benefit Payments Also Rise to 1.1108 Trillion KRW

Last month, the job opening-to-applicant ratio, which represents the number of job openings per job seeker, fell to 0.37, marking the lowest figure since the International Monetary Fund (IMF) crisis. The number of recipients and the total amount of unemployment benefits (job-seeking benefits) continued to rise, heightening concerns about the labor market.

According to the "May 2025 Labor Market Trends Based on Employment Administration Statistics" released by the Ministry of Employment and Labor on June 9, the number of regular subscribers to employment insurance at the end of last month stood at 15.58 million, an increase of 187,000 (1.2%) compared to the same month last year. This is the smallest increase since May 2020 (155,000).

By industry, the number of subscribers in manufacturing (3.85 million) and services (10.829 million) increased by 4,000 and 203,000, respectively. However, excluding the increase in mandatory foreign worker subscriptions under the Employment Permit System (E9·H2), the number of manufacturing subscribers actually decreased by 16,000.

Cheon Kyunggi, head of the Future Employment Analysis Division at the Ministry, explained, "If we look at the changes by mid-level manufacturing sectors, there was continued growth in food, other transportation equipment, automobiles, and chemical products, but declines in textiles, metal processing, rubber·plastic, and machinery equipment." He added, "Compared to the past, the number of sectors experiencing a decrease in subscribers is increasing."

The number of subscribers in construction was 754,000, a decrease of 19,000. The construction sector, especially general construction, has seen a decline in subscribers for 22 consecutive months. However, while the decrease had remained in the 20,000 range earlier this year, the decline has now narrowed to the 10,000 range.

By age group, the number of subscribers increased among those in their 30s (73,000), 50s (54,000), and those aged 60 and over (190,000). In contrast, the number of subscribers under 29 (-93,000) and in their 40s (-37,000) declined due to population decreases. Those under 29 saw declines in information and communications, wholesale and retail, and manufacturing, while those in their 40s experienced marked decreases in construction, wholesale and retail, and manufacturing.

Cheon stated, "Recent trends show that the manufacturing and construction industries are struggling, while the service sector is recovering. Considering projections from research institutes, the labor market may hold up through the first half of the year, but conditions are expected to worsen from the second half onward."

The number of new applicants for job-seeking benefits (unemployment benefits) was 85,000, down by 3,000 (3.1%). This was due to decreases in applicants from public administration (-19.2%) and health and welfare (-6.7%), among others. The number of benefit recipients rose by 24,000 (3.7%) to 670,000. The total amount paid out also increased by 32.2 billion KRW (3.0%) to 1.1108 trillion KRW. The cumulative total paid out this year as of last month is 5.3663 trillion KRW.

The number of new job postings via Employment24 fell by 46,000 (24.8%) to 141,000, marking 27 consecutive months of decline. The number of new job seekers was 376,000, an increase of 10,000 (2.6%). The job opening-to-applicant ratio, representing the number of jobs per job seeker, dropped by 0.14 points to 0.37, the lowest since May 1998 (0.32).

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