Continued Slowdown in Employment Insurance Enrollment... Largest Decline Ever for Those Under 29

Permanent Employment Insurance Subscribers Reach 15 Million
Growth Rate Remains at 1% and Continues to Decline
Construction Industry Declines for 14 Consecutive Months Due to Economic Downturn

The number of employment insurance subscribers last month increased by only 190,000, marking the lowest increase in 43 months. For the age group under 29, the number of subscribers decreased by more than 100,000 due to factors such as population decline, showing the largest drop ever recorded.

According to the "Labor Market Trends Based on Employment Administration Statistics for September 2024" released by the Ministry of Employment and Labor on the 14th, the number of regular employment insurance subscribers as of the end of last month was 15.45 million, an increase of 194,000 compared to the same month last year. While this is the highest number of subscribers ever, the increase rate is the second lowest since February 2021 (192,000).

The number of employment insurance subscribers has been increasing this year, but the growth rate has dropped to the 1% range. It has continued to decline from May (1.6%), June (1.5%), July (1.5%), and August (1.4%) to September (1.3%). Compared to September 2022 (2.6%) and September last year (2.4%), the growth rate is more than 1 percentage point lower.

By industry, the number of subscribers in manufacturing and service sectors increased. Manufacturing recorded 3 million 855,000 subscribers, an increase of 30,000 compared to the same month last year, mainly in other transportation equipment and food products. In the service sector, subscribers increased by 176,000, mainly in health and welfare and business services, reaching 10.681 million.

However, excluding the natural increase of foreign workers under the Employment Permit System (E9, H2), the number of manufacturing subscribers decreased by 9,000. This decline has continued for 12 consecutive months. The number of foreign workers under the Employment Permit System was 244,000 as of the end of last month, an increase of 44,000 compared to the same month last year.

The number of subscribers in the construction industry decreased by 15,000 compared to the same month last year, totaling 765,000. Due to poor construction market conditions, the comprehensive construction sector has shown a decline for 14 consecutive months. Following decreases of 12,000 in July and 13,000 in August, the decline widened in September as well, with the number of subscribers dropping by more than 10,000 each month.

By age group, the number of subscribers increased in their 30s (49,000), 50s (103,000), and 60 and above (204,000), while it decreased in those under 29 (-113,000) and in their 40s (-49,000). In particular, the under-29 group showed a notable decline in industries such as information and communication and retail, influenced by population decline.

A Ministry of Employment and Labor official stated, "The number of insured persons under 29 has been decreasing for 25 consecutive months since September 2022." They added, "The scale of the decrease in subscribers under 29 is the largest since employment insurance statistics began." The Ministry also explained that it is the first time that the number of subscribers has decreased by over 100,000 for three consecutive months since July.

Last month, 81,000 people newly applied for unemployment benefits, a decrease of 800 (1.0%) compared to the same month last year, mainly in education services and health and welfare. The number of benefit recipients increased by 11,000 (1.8%) to 601,000. The amount paid was 962.5 billion KRW, an increase of 26.4 billion KRW (2.8%) compared to the same month last year.

In September, new job postings on Worknet totaled 171,000, a decrease of 56,000 (24.6%) compared to the same month last year. New job seekers numbered 341,000, an increase of 5,000 (1.4%). The Worknet job-to-applicant ratio (number of jobs per job seeker) was 0.50, down compared to the same month last year.