14.64 Million Employed Under Employment Insurance in March... Government Says "Labor Market Recovery Trend"

Employment Insurance Subscribers Reach 14.637 Million... Up 555,000 from Previous Year
Manufacturing Industry Subscribers at 3.661 Million... 15 Consecutive Months of Growth
Job-Seeking Benefit Recipients at 668,000... Decrease of 91,000 in One Year

The Seoul Employment Welfare Plus Center in Jung-gu, Seoul, on October 6 last year. Photo by Mun Ho-nam munonam@

[Asia Economy Sejong=Reporter Lee Junhyeong] Last month, the number of employment insurance subscribers increased by 555,000 compared to the same month last year, reaching approximately 14.64 million. This is seen as an indication that the labor market, which had been contracted due to COVID-19, has entered a recovery phase.

According to the "March 2022 Employment Administration Statistics" released by the Ministry of Employment and Labor on the 11th, the number of employment insurance subscribers last month was 14.637 million, an increase of 555,000 compared to the same month last year. Employment insurance subscribers have increased by more than 500,000 for three consecutive months since January this year. This is attributed to the continued strong performance of domestic demand and exports, as well as the easing of social distancing measures, which improved conditions for face-to-face services. A Ministry of Employment and Labor official explained, "Employment insurance subscribers are increasing across all industries and age groups," adding, "We judge that the labor market is showing a recovery trend."

Number of Employment Insurance Subscribers and Trends in Increase and Decrease.
Photo by Ministry of Employment and Labor

Specifically, the number of subscribers in the manufacturing sector was 3.661 million, an increase of 79,000 compared to the same month last year. The number of manufacturing subscribers has increased for 15 consecutive months. Most major manufacturing fields, including electronics and telecommunications, metal processing, and electrical equipment, saw an increase in insured persons. In particular, the Ministry of Employment and Labor explained that the rise in demand for lunch boxes and semi-processed foods has led to a noticeable increase in subscribers in the food products sector.

Last month, the number of subscribers in the service sector was 10.065 million, an increase of 441,000 compared to the same month last year. This was the result of a significant increase in demand for care, social welfare, and non-face-to-face services. The government's easing of quarantine guidelines, which allowed face-to-face service industries to enter a recovery phase, also had an impact. By industry, wholesale saw an increase in subscribers centered on processed foods, manufacturing equipment, and merchandise brokerage. Retail showed growth in online shopping and convenience stores.

Trends in New Jobseeker's Allowance Applicants, Beneficiaries, and Benefit Amounts.
[Photo by Ministry of Employment and Labor]

Last month, new applicants for unemployment benefits numbered 133,000, a decrease of 16,000 (10.9%) compared to the same month last year. The number of beneficiaries of unemployment benefits was also 668,000, down 91,000 (12%) from the same period last year. Both new applicants and beneficiaries of unemployment benefits have been declining for nine consecutive months since July last year. The total benefit amount was 1.0036 trillion won, a decrease of 175.4 billion won (14.9%). The average benefit amount per claim was approximately 1.34 million won.

Kim Youngjung, Director of Employment Policy at the Ministry of Employment and Labor, said, "Despite the spread of COVID-19 last month, the labor market situation continues to show steady recovery," adding, "The fact that new applicants and beneficiaries of unemployment benefits have decreased for nine consecutive months is a sign of the labor market's recovery." Director Kim also added, "We will ensure steady support such as employment retention subsidies for special employment support sectors that continue to suffer damage due to quarantine restrictions."