Construction Cold Snap Slows Employment Insurance Enrollment... November Job-Seeking Allowance Applications Reach Record High

New Employment Insurance Enrollees 189,000
Lowest Since January 2021 (169,000)

Construction Market Deterioration Triggers Red Flags in Various Indicators
"Situation Worse Than Last Year" Assessment

Last month, the increase in new employment insurance subscribers remained at its lowest level since January 2021. The record decrease in employment insurance subscribers in the construction industry had an impact. Following October, the number of new job-seeker benefit applicants last month also recorded the highest figure ever for November. This too is a result of the downturn in the construction market.

According to the 'Labor Market Trends Based on Employment Administration Statistics for November 2024' released by the Ministry of Employment and Labor on the 9th, as of the end of last month, the number of regular employment insurance subscribers was 15,477,000, an increase of 189,000 (1.2%) compared to the same month last year. This increase is the lowest since January 2021 (169,000).

The employment insurance subscriber growth rate has remained in the 1% range this year. It continued to decline from May (1.6%), June (1.5%), July (1.5%), August (1.4%), and September (1.3%), rebounded in October (1.4%), but fell again last month.

By industry, employment insurance subscribers increased in manufacturing (28,000) and service sectors (176,000), but decreased in construction (-17,000). In the construction industry, centered on general construction, the number has decreased for 16 consecutive months, marking the largest decline since related statistics began.

In manufacturing, excluding the increase in foreign workers under the Employment Permit System (E9, H2), the number decreased by 8,000. This marks the 13th consecutive month of decline. The number of employment insurance subscribers among foreign workers under the Employment Permit System was 249,000 as of the end of last month, an increase of 40,000 compared to the same month last year.

By age group, subscribers increased among those in their 30s (58,000), 50s (87,000), and 60 and older (198,000), but decreased among those 29 and younger (-108,000) and in their 40s (-47,000). Especially among those 29 and younger, the decrease was mainly in information and communication (-23,000) and wholesale and retail (-21,000), influenced by population decline.

Last month, new job-seeker benefit applicants numbered 90,000, an increase of 2,000 (2.2%) compared to the same month last year. This is the largest increase ever recorded for November. The rise was influenced by a significant increase in applicants from the construction industry (28,000) due to the economic downturn. The number of job-seeker benefit recipients also increased significantly in construction (138,000), reaching 543,000 last month, up 13,000 (2.5%). The payment amount also rose to 842.6 billion KRW, an increase of 12.5 billion KRW (1.5%).

Cheon Kyung-gi, Director of Future Employment Analysis at the Ministry of Employment, said, "The number of new job-seeker benefit applicants in October and November is the highest ever," adding, "By age, it is centered on those in their 50s and 60s." He further explained, "While the number of insured workers in construction is decreasing, the decline is mainly among those under 30 and those in their 30s." Overall, he said, "There is a lack of new inflow, and it appears that current employees are applying for unemployment benefits due to difficulties in the economic situation," and "The current situation is worse than last year."

Last month, new job postings on Worknet totaled 165,000, a decrease of 74,000 (-30.8%) compared to the same month last year. This is the lowest number of new job postings since November 2009 (136,000). New job seekers numbered 358,000, a decrease of 19,000 (-5.0%). The Worknet job-to-applicant ratio (number of jobs per job seeker) was 0.46, lower than 0.63 in the same month last year.