UNEMPLOYMENT BENEFIT CASES SURGES AMID VIRUS

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Concerns are growing the coronavirus pandemic is starting to deal an earnest blow to the labor market. Last month, over 150-thousand people in Korea filed for unemployment benefits. The amount of allowances paid out also soared to a record high.

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State allowances for job-seekers are financial support provided to unemployed people who signed an employment insurance policy. Last month, 156-thousand people newly applied, up 25% from 2019. It's the highest figure since the 2009 global financial crisis. Some 76-thousand job-seekers filed for benefits from the food and accommodations industry, the hardest hit by the COVID-19 outbreak, posting the steepest on-year growth. Business services and health and welfare sectors trailed the list. The amount of allowances paid out in March totaled 898.2 billion won, surging more than 40% on-year to set a new record in just a month. Meanwhile the increase in new employment insurance policy subscriptions hit a 16-year low. The number of policy holders stood at around 13.7 million in March, up just 1.9% from 2019. It's the first time in 2 years the monthly growth figure dropped below 300-thousand. New employment insurance subscriptions in the accommodations sector posted negative growth amid the pandemic.

[Soundbite] IM SEO-JEONG(VICE MINISTER OF EMPLOYMENT & LABOR) : "New subscriptions have slowed in the services sector such as accommodations, food, whole sale, retail and education due to social distancing and delay in the school semester."

The Employment and Labor Ministry's latest data on benefit claims only take into account those with employment insurance. The figures do not include other types of workers including the self-employed. Effects of the COVID-19 economic fallout will also come to light through March job numbers, to be released by Statistics Korea later this week.