Last Year’s Employment Insurance Enrollment Increase Hits Record Low at 1.6%

15,311,000 Subscribers in December Last Year
Employment Insurance Growth Remains in the 1% Range
Record-Low Decrease in Subscribers Under 29
Job-to-Applicant Ratio Falls Below 2003 Credit Card Crisis Levels

Last month, the increase in employment insurance subscribers recorded the lowest level in 55 months. The impact of economic downturns such as population decline and sluggish domestic demand led to an annual average growth rate of employment insurance subscribers last year of 1.6%, the lowest since related statistics began.

According to the 'Labor Market Trends Based on December 2024 Employment Administration Statistics' released by the Ministry of Employment and Labor on the 13th, the number of regular employment insurance subscribers as of the end of last month was 15,311,000, an increase of 159,000 (1.1%) compared to the same month last year. This is the smallest increase in 55 months since May 2020 (155,000). In terms of December records, it was the lowest increase since 2003 (53,000).

In terms of growth rate, the sluggish trend in the 1% range has continued since May last year (1.6%). The increase slowed down in June (1.5%), August (1.4%), September (1.3%), and November (1.2%) of that year. The annual average growth rate last year was 1.6%, the lowest since related statistics began in 1997. It was even lower than in 2003 (1.9%), when the credit card crisis occurred.

Cheon Kyung-gi, head of the Future Employment Analysis Division at the Ministry of Employment, said, "(In December) the sector that slowed down the most was social welfare services," adding, "There was a decrease of about 30,000 in non-residential welfare facilities, influenced by the end of year-end employment contracts in market-type projects among government direct job projects."

By industry, employment insurance subscribers increased significantly in manufacturing (26,000) and service sectors (149,000). In manufacturing, subscribers increased mainly in other transportation equipment, food products, and automobiles. However, excluding the increase in mandatory enrollment of foreign workers under the Employment Permit System (E-9, H-2), there was a decrease of 8,000, marking the 14th consecutive month of decline. The service sector showed an increasing trend mainly in health and welfare, accommodation and food services, and professional scientific services.

On the other hand, construction (-17,000) saw a decrease in subscribers mainly in general construction, showing a negative trend for 17 consecutive months. The decrease in subscribers also expanded in July (-13,000), August (-13,000), September (-15,000), and November (-17,000) last year. Director Cheon said, "Although construction orders have recently increased, it takes more than a year and a half to reach the stage of hiring people," and predicted, "The difficult situation will continue for the time being."

By age group, employment insurance subscribers increased in their 30s (63,000), 50s (77,000), and 60 and above (168,000), but decreased in those under 29 (-101,000) and in their 40s (-48,000). Both age groups were affected by population decline, and recorded the largest decrease ever for December. In particular, the decrease in youth subscribers has continued for 30 months.

Last year, new applications for unemployment benefits totaled 101,000, increasing by 8,000 (9.0%) mainly in construction (4,600) and wholesale and retail trade (800). The number of unemployment benefit recipients was 531,000, up 19,000 (3.6%), and the amount paid also increased by 44.5 billion won (5.9%) to 803.2 billion won.

New job postings on Worknet were 158,000, down 38,000 (-19.4%). New job seekers were 392,000, up 41,000 (11.8%). The Worknet job-to-applicant ratio (number of jobs per job seeker) was 0.40, down from 0.56 in the same month last year. This is the lowest since January 2021 (0.31). For December records, it was the lowest since 2009 (0.39).

Director Cheon said, "The Business Labor Force Survey also showed a decrease in new hires, a slowdown in the number of workers, and a significant reduction in vacant jobs," adding, "Overall, I think the demand for recruitment at workplaces has significantly decreased."