S. Korea's unemployment allowance reaches 5-month high on sluggish service sector

[Photo by Lee Chung-woo]

Unemployment allowance payment in South Korea rose to a 5-month high in February, surpassing 1 trillion won ($881.6 million) again as many people, especially in the service industry, lost their jobs amid the pandemic crisis and social distancing rules.

According to data from the Ministry of Employment and Labor on Monday, the state unemployment allowance came to 1.01 trillion won last month, the highest level in five months after 1.17 trillion won tallied in September.

Employment improved slightly in February from a month ago, but the service sector continued to contract.

The number of Koreans subscribed to employment insurance increased 1.4 percent on year to 13.391 million in February.

The number of subscribers in the accommodation and food services sector, however, plunged by 59,000 in February from a year ago. In January, the sector lost 54,000 subscribers.

By age, the number of employment insurance subscribers in their 60s and over increased by 159,000, in their 50s by 85,000, and 40s by 4,000 from a year ago but the number of subscribers in their 30s and 20s fell by 48,000 and 9,000, respectively.

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