S. Korea faces severe employment crisis following another surge in COVID-19

Arirang News

11 May 202001:46

Summary

TLDRSouth Korea is grappling with an employment crisis due to a surge in COVID-19 cases, leading to a record number of unemployment benefit claims in April. With companies hesitant to hire and more layoffs, unemployment benefits soared by 34.6% compared to the previous year, amounting to $820 million. The impact is widespread, affecting not only manufacturing but also tourism and retail sectors. The actual toll is believed to be higher as self-employed, special employment workers, and freelancers are not covered by employment insurance.

Takeaways

😷 South Korea is experiencing an employment crisis due to another surge in COVID-19 cases.
📉 Companies are hesitant to hire new employees, leading to a drop in employment insurance subscriptions.
💼 In April, a record number of unemployment benefits were claimed, indicating a significant job loss.
📈 There was a 34.6% increase in unemployment benefits paid out in April compared to the same period last year.
💲 Approximately 820 million U.S. dollars were paid in unemployment benefits in April alone.
📋 The unemployment figures are likely to rise further as the economic impact of the pandemic continues.
🏭 Job losses are widespread, affecting not only the manufacturing sector but also tourism and retail.
🤝 The actual impact of COVID-19 on employment is likely more severe as the figures do not account for the self-employed, special employment, and freelancers.
🌐 The economic backbone of South Korea, the manufacturing sector, is among the industries hit hard by job losses.
⏳ The situation has been worsening for three consecutive months, with each month setting a new record for unemployment benefits.

Q & A

What is the current situation regarding employment in South Korea due to the COVID-19 pandemic?
-South Korea is facing an employment crisis following another surge in COVID-19 cases, leading to companies being reluctant to hire and more workers being laid off.
How has the number of new subscribers to employment insurance changed in South Korea?
-The number of new subscribers to employment insurance continues to drop, indicating that companies are not hiring due to temporary business closures or putting employees on leave.
What was the percentage increase in unemployment benefits paid out in April compared to the same month last year?
-There was a 34.6 percent increase in unemployment benefits paid out in April compared to the same month last year.
How much was paid out in unemployment benefits in South Korea in April?
-Approximately 820 million U.S. dollars was paid out in unemployment benefits in April.
What is the reason behind the record amount of unemployment benefits paid out in April?
-The record amount was due largely to the negative economic impact of the COVID-19 outbreak.
Is this the first time the unemployment benefits figure has reached a new record in South Korea?
-No, April marked the third consecutive month the figure reached a new record.
What sectors in South Korea have been particularly affected by job losses?
-Job losses have been significant in the manufacturing sector, as well as in tourism and retail sectors.
Are self-employed individuals and freelancers included in the unemployment figures mentioned in the script?
-No, the figures do not include self-employed individuals, workers in special employment, and freelancers who are not covered by employment insurance.
What does the script suggest about the actual impact of COVID-19 on employment in South Korea?
-The actual impact of COVID-19 on employment is likely even more severe than the figures suggest, as they do not account for those not covered by employment insurance.
What is expected to happen to the number of applicants and the size of unemployment benefits in the near future?
-The number of applicants and the size of unemployment benefits are expected to increase further.
Who reported on the employment crisis in South Korea due to the COVID-19 pandemic?
-Kim Hyo-sun from Arirang News reported on the employment crisis in South Korea.

Outlines

00:00

📉 South Korea's Employment Crisis Amid COVID-19 Surge

The COVID-19 pandemic has severely impacted the South Korean workforce, leading to a significant rise in unemployment. In April, a record number of unemployment benefit claims were filed, reflecting a 34.6% increase from the previous year. The economic downturn caused by the virus has made companies hesitant to hire, resulting in layoffs. The actual impact is likely more severe as the figures do not account for the self-employed, workers in special employment, and freelancers who are not covered by employment insurance. The manufacturing sector, which is crucial to South Korea's economy, has been hit, along with tourism and retail sectors. The unemployment benefits paid out in April alone amounted to 820 million U.S. dollars, indicating the scale of the crisis.

Mindmap

Keywords

💡COVID-19 pandemic

The COVID-19 pandemic refers to the global outbreak of the novel coronavirus disease that began in late 2019. It has had widespread effects on health, economies, and daily life worldwide. In the context of the video, the pandemic is the primary cause of the employment crisis in South Korea, leading to a surge in unemployment and economic downturn.

💡Cluster infection

A cluster infection is a term used to describe a localized outbreak of a disease where multiple cases are linked to a common source or location. In the video, the mention of another cluster infection in South Korea signifies a resurgence of COVID-19 cases, exacerbating the employment situation.

💡Unemployment benefits

Unemployment benefits are financial assistance provided by the government to individuals who have lost their jobs through no fault of their own. The video reports a record number of people in South Korea filing for these benefits, indicating a significant increase in joblessness due to the pandemic.

💡Employment crisis

An employment crisis is a situation where there is a significant loss of jobs or a lack of job opportunities within an economy. The video highlights South Korea's employment crisis as a direct result of the COVID-19 pandemic, with companies hesitant to hire and many workers being laid off.

💡Economic impact

The economic impact refers to the effects of an event or situation on an economy, which can include changes in employment rates, business operations, and overall economic growth. The video discusses the negative economic impact of the COVID-19 outbreak, leading to a substantial payout in unemployment benefits.

💡Manufacturing sector

The manufacturing sector is a part of the economy that involves the production of goods through the use of labor, machinery, and processes. It is highlighted in the video as the backbone of South Korea's economy, and the pandemic has caused job losses in this sector, contributing to the employment crisis.

💡Tourism and retail sectors

Tourism and retail are sectors that have been severely affected by the pandemic due to travel restrictions and changes in consumer behavior. The video mentions job losses in these sectors, illustrating the broad impact of COVID-19 on employment across various industries.

💡Self-employed

Self-employed individuals are those who work for themselves rather than being employed by a company. The video points out that the official figures of job losses may not fully represent the actual impact of COVID-19, as they often exclude self-employed people who may not be covered by employment insurance.

💡Special employment

Special employment refers to types of employment that are not standard or full-time, such as temporary or contract work. The video suggests that workers in special employment categories may not be accounted for in the unemployment figures, indicating a potential underestimation of the crisis.

💡Freelancers

Freelancers are independent contractors who offer services to clients on a project-by-project basis. The video notes that freelancers, like the self-employed, are often not included in employment insurance, which means they may not be represented in the unemployment statistics, further highlighting the severity of the impact of COVID-19.

💡Non-eligible people

Non-eligible people in the context of the video refers to individuals who do not qualify for employment insurance benefits. The script mentions a drop in new subscribers to employment insurance compared to the increase in non-eligible people, suggesting that many are losing jobs but not receiving benefits due to ineligibility.

Highlights

The COVID-19 pandemic has caused a significant impact on South Korean workers.

South Korea is experiencing a cluster infection of the virus.

A record number of people filed for unemployment benefits in April.

South Korea is facing an employment crisis due to the surge in COVID-19 patients.

Companies are hesitant to hire new employees.

There is an increase in the number of workers being laid off.

The number of new subscribers to employment insurance is dropping.

Companies are not hiring due to temporary business closures or employee leaves.

Unemployment benefits paid out in April marked a 34.6% increase from the same month last year.

Approximately 820 million U.S. dollars in unemployment benefits were paid out in April.

The economic impact of the outbreak is the primary reason for the increased benefits payout.

April's figure is the third consecutive month of record unemployment benefit payouts.

The number of applicants and the size of unemployment benefits are expected to increase further.

Job losses are widespread across manufacturing, tourism, and retail sectors.

The actual impact of COVID-19 may be more severe than the figures suggest.

Self-employed, special employment workers, and freelancers are not covered by employment insurance.

The employment crisis in South Korea is a result of the COVID-19 pandemic's economic fallout.