Ministry of Employment and Labor's 'February Labor Market Trends'
Impact of Natural Population Decline
Due to the impact of population decline, the number of young people and those in their 40s enrolled in employment insurance continues to decrease, while foreign workers are replacing them, resulting in a substitution phenomenon.
According to the "February 2024 Labor Market Trends" announced by the Ministry of Employment and Labor on the 11th, as of the end of last month, the total number of regular employment insurance subscribers was 15,227,000, an increase of 312,000 (2.1%) compared to the same month last year.
Among the increase in subscribers, excluding the increase in foreign subscribers under the Employment Permit System (EPS) (97,000), the increase in domestic subscribers was 215,000.
By industry, the number of subscribers in manufacturing was 3,838,000, an increase of 74,000 compared to last year. However, excluding foreign workers under the Employment Permit System, it decreased by 11,000.
An official from the Ministry of Employment and Labor explained, "89.5% of foreign workers under the Employment Permit System (E9, H2) are concentrated in manufacturing, so their impact on manufacturing subscriber trends is significant," adding, "As the scale of foreign labor expands in the future, this impact is expected to continue for the time being."
The scale of Employment Permit System introductions this year is 165,000, which has greatly expanded from 52,000 in 2021, 69,000 in 2022, and 120,000 in 2023.
In manufacturing, most sectors such as metal processing, food products, other transportation equipment, and automobiles continued to increase, but electronics & telecommunications, textiles, and apparel decreased.
The number of subscribers in the service industry was 10,468,000, an increase of 235,000 compared to the same month last year. The health and welfare sector saw an expanded increase due to early execution of government job projects. Accommodation and food services, business services, and transportation and warehousing continued to grow due to increased face-to-face activities, outsourcing of service areas, and changes in purchasing methods.
On the other hand, wholesale and retail trade and real estate decreased, and information and communications slightly turned to a decrease. The number of subscribers in real estate decreased by 2,000 due to the contraction of the real estate market, and the number of subscribers in information and communications decreased by 200, turning to a decline.
By age group, those under 29 and those in their 40s decreased by 63,000 and 11,000 respectively. Those under 29 were most affected by population decline, decreasing in wholesale and retail trade (-22,000), information and communications (-17,000), and business services (-10,000), while those in their 40s decreased in construction (-13,000), wholesale and retail trade (-7,000), and real estate (-5,000).
Other age groups saw increases: 30s by 56,000, 50s by 124,000, and 60 and over by 206,000.
New applications for unemployment benefits last month were 93,000, an increase of 14,000 (13.3%) compared to the same month last year. Most industries such as wholesale and retail trade (-23,000), manufacturing (-19,000), business facility management (-15,000), and education services (-14,000) decreased, while information and communications (300) increased.
During the same period, the number of unemployment benefit recipients was 626,000, and the total payment amount was 961.9 billion KRW, increasing by 1.1% (7,000 people) and 8.5% (75.8 billion KRW) respectively compared to the same month last year.
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