The growth in South Korea’s employment insurance registrations reached its lowest point in nearly four years. (Image courtesy of Yonhap)
SEOUL, Dec. 10 (Korea Bizwire) – The growth in South Korea’s employment insurance registrations reached its lowest point in nearly four years, highlighting a slowdown in the labor market as the country faces a range of economic headwinds.
According to the Ministry of Employment and Labor, the number of regular employment insurance subscribers increased by 189,000 year-over-year in November, reaching 15.48 million. This represents a 1.2% growth, the slowest pace since January 2021. November’s increase was also the smallest for the month in 21 years, dating back to 2003.
Sector-wise, manufacturing and service industries saw gains, while construction continued to decline. In manufacturing, increases in employment in sectors such as automotive, food products, and chemicals were offset by declines in textiles and apparel.
Notably, excluding foreign workers under the Employment Permit System, domestic manufacturing employment declined by 8,000, marking a 14-month consecutive decrease.
The service sector added 1.07 million subscribers, driven by growth in healthcare, professional services, and hospitality. However, retail and information technology sectors reported declines. In construction, employment fell for the 16th straight month, primarily in general contracting.
Demographically, women accounted for the majority of the growth, with an increase of 143,000 compared to 46,000 for men. While employment among those in their 30s, 50s, and over 60s grew, younger workers under 30 and those in their 40s faced declines due to population shifts and employment challenges.
Foreign workers made up a significant portion of the overall increase, with 24,900 subscribers added—21% of the total growth—reflecting expanded labor imports.
Unemployment benefits also reached record levels for November. New applicants for job-seeking allowances totaled 90,000, a 2.2% year-on-year increase, with payouts rising to 842.6 billion won. The government has adjusted employment insurance fund allocations to cover the rising costs.
Meanwhile, job openings reported through the government’s Worknet portal fell by 30.8% to 165,000, the lowest for November since 2009, signaling weaker demand for labor.
Chun Kyung-ki, an official from the Ministry of Employment, attributed the construction sector’s challenges to structural issues, adding that external factors like export and domestic market slowdowns are contributing to a subdued labor environment.
He noted that while political uncertainty, such as the current impeachment proceedings, could potentially impact the job market, its effects would only be evident in hindsight.
M. H. Lee (mhlee@koreabizwire.com)
