Unemployment Benefits Paid 781.9 Billion Won, Record High... Manufacturing Employment Declines for Six Consecutive Months

Ministry of Employment and Labor Announces 'February Labor Market Trends'

Asia Economy DB=Photo by Honam Moon munonam@

[Asia Economy Reporter Kim Bo-kyung] Last month, the amount paid for job-seeking benefits (unemployment benefits) reached 781.9 billion KRW, setting a new record high. Additionally, the number of manufacturing industry employment insurance subscribers has been declining for six consecutive months since September last year, indicating a worsening employment situation.

According to the "February Labor Market Trends" released by the Ministry of Employment and Labor on the 9th, the amount paid for job-seeking benefits last month was 781.9 billion KRW, an increase of 169 billion KRW (32.0%) compared to the same month last year. This surpassed the previous record high of 758.9 billion KRW set in July last year.

The Ministry of Employment and Labor explained that the increase in job-seeking benefit payments was due to the rise in employment insurance subscribers and the strengthening of livelihood protection functions by extending the payment period and raising the upper and lower limits since October last year.

The significant increase in job-seeking benefit payments last month compared to the same month last year was also influenced by the fact that the number of working days at employment centers last month (20 days) was three days more than the same month last year.

The number of job-seeking benefit recipients last month was 536,000, an increase of 75,000 (16.3%) compared to the same month last year. New applicants for job-seeking benefits were 107,000, up by 27,000 (33.8%).

The number of employment insurance subscribers last month was 13.8 million, an increase of 376,000 (2.8%) compared to the same month last year.

The number of manufacturing industry employment insurance subscribers was 3.554 million, a decrease of 27,000 (0.7%). The number of manufacturing employment insurance subscribers has been declining for six consecutive months since September last year, with the decline widening.

[Image source=Yonhap News]

Among manufacturing industries, the number of employment insurance subscribers in the automobile sector decreased by 7,600, continuing the downward trend. The Ministry of Employment and Labor explained this was due to production declines and restructuring.

The electronics and telecommunications sectors also saw a decrease of 6,200 employment insurance subscribers due to the relocation of production lines overseas and restructuring.

In manufacturing, the number of job-seeking benefit recipients and new applicants increased by 13,000 and 4,000 respectively compared to the same month last year.

Last month, the increase in employment insurance subscribers was driven by the service industry. The number of employment insurance subscribers in the service sector last month was 9.397 million, an increase of 391,000 (4.3%) compared to the same month last year.

Within the service industry, sectors with significant increases in employment insurance subscribers included health and welfare (125,000), accommodation and food services (54,000), professional scientific and technical services (45,000), and educational services (43,000). Employment insurance subscribers in public administration also increased by 33,000 due to expanded employment in the public sector.