1 trillion won in unemployment benefits paid out in August

Economy

Published: 07 Sep. 2020, 16:35

1 trillion won in unemployment benefits paid out in August

People apply for unemployment benefits at the Labor Ministry's branch office in Seoul on Sept. 1. [YONHAP]

More than 1 trillion won ($843 million) of unemployment benefits were paid out in August. It was the fourth consecutive month in which the government disbursements to those out of work exceeded that amount, though the total was slightly less than the record set in July.

According to the Labor Ministry on Monday, 1.09 trillion won in unemployment benefits were paid in August. That compares with the 1.19 trillion won a month earlier.

A total of 7.8 trillion won has been paid out so far this year, 60 percent of the 12.9 trillion won budgeted for 2020.

The number of recipients totaled 705,000 last month, a slight drop from July’s record of 731,000 but the third month in which the figure exceeded 700,000.

The number of people subscribing to the employment insurance program in August was 10.42 million, which is 262,000 more than a year ago. Subscriber numbers have been increasing on year since May.

In manufacturing, the number of new subscribers has declined. When compared to the same period last year, the number of people in manufacturing subscribing to employment insurance was down 63,000 in August.

The number of subscribers in manufacturing has been declining on year every month since last September.

Declines in subscriber numbers were greatest in the electronics and telecommunications and automotive categories.

In August, 128,000 fewer electronics and telecommunications workers subscribed to the insurance, and 107,000 fewer automotive workers.

In services, 314,000 new subscribers were added in August on year, which is up from July's 237,000.

Online shopping and other retail businesses benefited as social distancing resulted in a need for more workers.

Fewer young people are subscribing, while more older people are signing up as the number of government jobs for the elderly have been increased.

In August, 59,000 fewer people aged 29 or younger subscribed to employment insurance, while 52,000 fewer among those in their 30s subscribed. In the 60-and-over category, 208,000 more people subscribed to employment insurance.

The government expects the unemployment situation to worsen this month as the impact of the resurgence is likely to be felt in September.

BY HAN NAM-HYUN [lee.hojeong@joongang.co.kr]