Last month, the unemployment benefit payment was close to 1 trillion … 130,000 new applications, focused on manufacturing

Last month, the amount of job search benefits (unemployment benefits) was close to 1 trillion won, and the maximum was renewed for the third consecutive month. This is due to the labor crisis caused by the new coronavirus infection (Corona19). Unemployment benefit payments are also forecast to exceed 1 trillion won this month.

According to the 11th Ministry of Employment and Labor, the amount of unemployment benefit payments last month was 93.3 billion won. It increased by 2551 billion won (34.6%) compared to the same month last year. The amount of unemployment benefit payments is the highest for the third consecutive month after February (78.19 billion won) and March (89.82 billion won).

The number of new applicants for unemployment benefits after losing their jobs last month was 32,000 (33.0%) higher than the 129,000 last year. The number of people in April increased for the second time since the record in 1998 when the statistics were recorded. Typically, in April of each year, as the number of corporate hires increases, new applicants for unemployment benefits are declining. However, involuntary unemployment increased significantly this year in the wake of Corona19.

New applicants for unemployment benefits were especially concentrated in the manufacturing sector. In the manufacturing industry, 22,000 new applicants were the largest in all industries. It is the highest since April 2009 when the global financial crisis shocked. Subsequently, there were many applicants for unemployment benefits in the order of wholesale and retail businesses (16,300 people), commercial services businesses (1.5700 people), and health and wellness businesses (1.3900 people), such as hand supply of work, travel, exhibition and agency.
Last month, the number of job insurance underwriters increased by 163,000 (1.2%) over last year. It is the lowest since April. This is the result of companies reducing their new recruits since Corona19. In particular, 57,000 subscribers fell in their 30s (ages 30-39). Employment insurance under-29s also fell 47,000 from last year. The number of jobs in 2,030 households has decreased by more than 100,000. Kwon Ki-seop, head of the Employment Policy Division of the Ministry of Employment and Employment, said: “I expect unemployment benefits to increase by approximately 12 trillion won by the end of the year. Last year, the annual payment of unemployment benefits totaled the highest record of KRW 8.90 trillion. The government budget for unemployment benefits this year was 9.5 trillion won. The Ministry of Employment plans to secure an additional budget of 3.4 billion won in unemployment benefits through the third additional budget.

Reporter Song Hye-mi [email protected]