The increase in the number of regular subscribers to employment insurance last month was the smallest in 22 years. The trend of employment insurance subscribers indicates the number of workers employed in relatively high-quality jobs. In particular, the employment situation in the construction industry is not good. The number of employment insurance subscribers in the construction sector has decreased for 24 consecutive months, marking the longest decline on record.
According to the 'July employment administrative statistics on labor market trends' released by the Ministry of Employment and Labor on the 11th, the number of regular subscribers to employment insurance last month was 15,599,000, an increase of 180,000 compared to the same month last year. This is the lowest growth since July 2003, when there was an increase of 106,000. It was even worse than during the COVID-19 pandemic (July 2020, an increase of 182,000).
While the number of employment insurance subscribers increased in the service sector, it decreased in the manufacturing and construction industries. Construction subscribers have decreased for 24 months, marking the longest decline on record. Additionally, the number of manufacturing subscribers switched to a decrease last month after 54 months, marking a decline since December 2020, and this trend continued for the second month.
The number of new applicants for 'job seeker benefits' provided to unemployed workers looking for new jobs decreased slightly. Last month, 111,000 people applied, a decrease of 1,000 from a year ago. However, the total amount of job seeker benefits paid increased to 1.1121 trillion won, with Director Cheon Gyeong-gi of the Ministry of Employment noting, 'The increase in those receiving long-term job seeker benefits for 8 to 9 months (240 to 270 days) greatly contributed to this.'
The job vacancy ratio, which indicates the number of jobs available per job seeker, was 0.4 last month. This is the lowest since July 1999 (0.39), during the IMF (International Monetary Fund) currency crisis. The job vacancy ratio has been low this year, consistently ranging from 0.2 to 0.4.
However, the Ministry of Employment clarified that this job vacancy ratio does not represent the overall employment market situation but reflects the hiring and job-seeking situation through its job platform 'Employment 24.' This platform is predominantly used in manufacturing, health and welfare, and small enterprises. Director Cheon added, 'Although there has been a shift toward an increase in weekly job vacancies on private job information platforms, it is undeniable that job demand is significantly shrinking. In particular, the hiring situation in the manufacturing sector is becoming very challenging.'
The Ministry of Employment forecasted that polarization in employment conditions between the service industry and the manufacturing and construction sectors is expected to intensify. Director Cheon stated, 'If retail sales improve due to the impact of the people's livelihood recovery consumption coupons, the number of subscribers to employment insurance in the service industry, which is currently driving the growth of employment indicators, will increase further. On the other hand, the manufacturing and construction sectors still face difficult employment situations, making recovery challenging.'