Assemblyman Kim Hoe-jae, "Last Month's Economic Pain Index Hits Highest Level Since 1999"

July Inflation Rate at 6.3%, Unemployment Rate at 2.9%... Economic Pain Index Reaches 9.2

Since Yoon Administration Inauguration, Economic Pain Index Worsens... Measures Needed to Alleviate Public Hardship

[Yeosu=Asia Economy Honam Reporting Headquarters Reporter Choi Cheol-hoon] The "economic pain index," calculated by adding the consumer price inflation rate and the unemployment rate, has reached an all-time high.

The economic pain index is an indicator that quantifies the quality of life as felt by the public. It was conceived by American economist Arthur Okun and is calculated by adding the consumer price inflation rate and the unemployment rate.

According to an analysis of Statistics Korea data by Kim Hoe-jae, a member of the Democratic Party of Korea (Yeosu City Eul, Jeollanam-do), the economic pain index last month recorded 9.2. The consumer price inflation rate was 6.3%, and the unemployment rate was 2.9%.

The economic pain index of 9.2 last month is the highest ever since the unemployment rate measurement criteria changed in June 1999. Since the inauguration of the Yoon Suk-yeol administration, as the government has failed to respond to high inflation at all, the economic pain index has been worsening day by day.

The economic pain index was 7.8 in April this year, rose to 8.4 in May when the Yoon Suk-yeol administration took office, then increased to 9.0 in June, and finally recorded an all-time high last month.

Excluding last month, the highest economic pain index was recorded in February and March 2001. At that time, the economic pain index was 9.1 for both months.

This is also the first time in 21 years and 4 months since March 2001 that the economic pain index has exceeded 9.0 for two consecutive months.

Considering the seasonality of employment indicators, the economic pain index last month rose by 3.4 points compared to the same month last year. This increase is the largest ever on a year-on-year basis.

By region, the economic pain index last month was highest in Gyeongnam (10.4), Chungbuk (9.9), and Chungnam (9.8). Among these, the economic pain index in Gyeongnam and Chungbuk is the highest ever since June 1999.

Chungnam recorded its highest ever economic pain index of 10.0 in June and last month recorded the second highest.

Other local governments recorded the following economic pain indices: Gangwon (9.7), Incheon (9.7), Jeonnam (9.5), Gwangju (9.5), Jeju (9.4), Ulsan (9.3), Daegu (9.3), Gyeongbuk (9.2), Busan (9.2), Gyeonggi (9.1), Sejong (8.8), Seoul (8.8), Jeonbuk (8.5), and Daejeon (8.3).

Rep. Kim Hoe-jae said, "The livelihood pain of the lower and middle classes is in a state of emergency, but the Yoon Suk-yeol government is becoming a 'government that ignores the common people and favors the rich,' shouting for tax cuts for the wealthy and neoliberal policies that only benefit the rich." He criticized, "The government's policy direction is to take away resources that should support vulnerable groups and only increase the profits of the wealthy."

He added, "Advanced countries such as the United States and the United Kingdom are already securing resources to support vulnerable groups. The Yoon government should withdraw the tax cuts for the wealthy and promptly prepare measures to alleviate the pain of the people and respond quickly to high inflation."

Yeosu=Asia Economy Honam Reporting Headquarters Reporter Choi Cheol-hoon hss79@asiae.co.kr