Employment insurance growth slows to 39-month low

[Photo by Yonhap]

The rate of growth in South Korean employment insurance subscribers slowed in May 2024 as the economically active population decreases thanks to declining birth rates and an aging population. The decline in new subscribers was particularly pronounced among young people under 29 and those in their 40s.

According to the country’s Ministry of Employment and Labor on Monday, the number of regular employment insurance subscribers in May 2024 was 15.39 million, an increase of 240,000 (1.5 percent) compared to the same month a year ago. It is the lowest increase in 39 months since February 2021, when the impact of Covid-19 pandemic led to an increase of 192,000.

By age group, the number of young subscribers under 29 and those in their 40s continued to decline. The number of young subscribers under 29 decreased by 89,000 during the cited period compared to the same month a year ago, its 21st consecutive month of declines.

The decline has been accelerating since a 32,000 decrease in October 2023. The number of employment insurance subscribers in their 40s fell by 34,000, continuing a seventh month of downward trends, and the construction industry saw the largest decline by industry. There were 773,000 subscribers in the construction industry in May 2024, 8,000 fewer than a year ago. The wholesale and retail (7,000) and manufacturing (5,000) sectors also saw a decrease in the number of subscribers.

The number of new employment insurance subscribers among foreign workers increased during the period. Out of the 240,000 new subscribers, 57,000 were foreign workers but the share of foreigners in the total number of new subscribers steadily declined to 23.8 percent during the period.

Meanwhile, the number of new applicants for job-seeking benefits in May was 88,000, up 2,000 (1.8 percent) from the same month a year ago. The total number of recipients of job-seeking benefits was 646,000, down 11,000 from the same month a year ago, and the total benefits paid increased by 14.8 billion won to 1.08 trillion won.