South Korea saw a rise in jobless claims for the second consecutive month in May, as indicated by data from the Labour Ministry. The increase in claims was attributed to higher demand in sectors such as construction, communications, and science.
According to the Ministry of Employment and Labor, the number of new applicants for job-seeking benefits reached 88,000 in May, marking a 1.8% increase compared to the same period last year. This upward trend has been ongoing since April, reflecting concerns about a potential economic slowdown.
While job-seeking benefits were more prevalent in industries like construction, information and communications, science and technology, and business services, there was a decrease in sectors such as manufacturing, transport, and health and welfare.
Job-seeking benefits, which are provided by the government to assist the unemployed in finding work, are primarily funded by the state employment insurance fund. In May, the total number of benefit recipients was 646,000, representing a 1.6% decrease from the previous year.
The overall payment for job-seeking benefits in May amounted to KRW1.08 trillion (USD783.9 million), marking a 1.4% increase from the same period last year. This financial support is crucial in helping individuals navigate the challenges of unemployment and secure new opportunities in the workforce.
As South Korea continues to grapple with the impact of the pandemic on its economy, addressing the needs of job seekers and providing adequate support for those facing unemployment remains a key priority for the government. The evolving landscape of job market demands underscores the importance of proactive measures to facilitate job creation and sustainable economic growth in the country.