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Low 10% of special high school students and self-employed, 75.6% reduction in income
About half of the recipients of government emergency job security support (emergency grant) were found to earn only the bottom 20% even before the new coronavirus infection (Corona 19). It means that many of the workers who were in the blind spot of the job safety net were “job dumpers” even before the infectious disease epidemic.
On the 2nd, the Ministry of Employment and Labor released the results of the analysis of 1,756,000 applicants for the first emergency subsidy. The emergency grant is a measure to provide up to 1.5 million won for 3 months for small self-employed, special-type workers (special high school), self-employed, and unpaid graduates whose income or sales have decreased due to Corona 19. The first grant was paid from June to July and the second grant is currently ongoing.
Among the beneficiaries of the first subsidy, 1,098,000 (62.5%) of the small self-employed constituted the majority. Next, there were 587,000 (33.4%) from special high school and self-employed, followed by 71,000 (4.0%) unpaid graduates. Among applicants, women accounted for 53.5%, more than men, and those aged 40 (25.6%) and 50 (28.0%) accounted for a large proportion. In particular, the proportion of small business owners between the ages of 40 and 60 reached 78.5%.
As a result of analyzing 1.49 million people who presented income data, not sales, among the recipients of emergency subsidies, 46.0% of them were in the bottom 20% of their income last year. 82.9% of beneficiaries are in the bottom 40% of their income. Regarding the type of work, the workers of special secondary / self-employed (48.0%) and the small self-employed (47.1%) had an income distribution 20% lower than those of unpaid leave (34.5% ). The incomes of the self-employed and special high schools were relatively more volatile than those of salaried workers. In particular, in the case of self-employed and special secondary workers, the rate of decrease in income of the first quintile, which is 10% lower, was 75.6%, and the rate of decrease was 20% higher than that of the sixth quintile (55.6%) of the bottom 60%. This means that the lower the income, the greater the decrease in income.
Among the special high schools and the self-employed, insurance planners (105,000 people) applied the most for emergency subsidies. While the proportion of insurance agents among the specials is large, Corona 19 is interpreted as hitting it to mean that it is a face-to-face job. Additionally, there were 39,000 applicants for service-related employees such as caregivers and assistants who have many face-to-face. Education-related employees such as academies, sports instructors and extracurricular teachers, who were unable to attend classes due to social distancing, also applied for emergency grants.
Among applicants, income from special high school and freelancers in March-April this year decreased 69.1% on average compared to before the Corona 19 epidemic. Among them, the proportion of the class of Low income, which is the bottom 20% of income for adjunct articles and visiting professors, is 56.1% and 51.0%, respectively, and these are relatively high in the number of applicants with a rate of income reduction of more than 60%, which seems to be the worst situation among the special studies.
Employment Minister Lee Jae-gap said: “It is clearly revealed that special high schools and freelancers with Corona 19 are the most vulnerable in the labor market, which is in the blind spot of the job safety net. “. We plan to make efforts to legislate the revised ‘Insurance Premium Collection Act’ bill within the year, and also prepare specific details on the establishment of an appropriate income detection system and include it in the final roadmap of year “.
Sejong = Shin hye-jung reporter [email protected]
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