The number of subscribers to employment insurance increased compared to the same period last year, but the growth was primarily driven by an increase in foreign nationals. As a result of population decline, subscribers in their 20s and 40s have been decreasing for 17 and 4 consecutive months, respectively.
According to the “Labor Market Trends Based on February 2024 Employment Statistics” released by the Ministry of Employment and Labor on March 11, the number of permanent employees enrolled in employment insurance stood at 15,227,000 as of the end of last month, marking an increase of 312,000, or 2.1 percent, compared to the same period last year.
Of the increased new subscribers, foreigners accounted for 97,000, representing 31.08 percent. The number of foreign subscribers has been continuously increasing since the government began mandating employment insurance for foreigners under the Employment Permit System starting from 2021.
Excluding foreigners, the increase in domestic subscribers is relatively modest. Particularly in the manufacturing sector, where 89.5 percent of foreign employees under the Employment Permit System are concentrated, there was an increase of 74,000 compared to the same period last year. However, when considering only domestic subscribers, there was a decrease of 11,000. Domestic subscribers in the manufacturing sector have been declining for the past five months.
With the government planning to expand the Employment Permit System for foreign workers to a record high of 165,000 individuals this year, the trend of increasing foreign subscribers is expected to continue for the foreseeable future.
Regarding this matter, an official from the Ministry of Employment and Labor stated, “The significant increase in foreign subscribers was largely driven by small businesses coming under the coverage of employment insurance in January of last year. As a result of this underlying factor, we have seen a significant decrease in the rate of increase since January of this year.” Furthermore, he remarked, “We expect to see a return to normal trends from April onwards.”
When looking at the enrollment status by age group, a noticeable decline is observed among subscribers in their 20s and 40s. The net decrease in subscribers under the age of 30 has continued for 17 consecutive months. The number of subscribers in their 40s has also decreased by 11,000 last month, marking the fourth consecutive month of decline since the first decline in November last year.
The decline in subscribers in their 20s and 40s is attributed to the impact of population decline. In fact, the population in their 20s and 40s decreased by 218,000 and 135,000 people, respectively, as of last month.