Despite Chuseok in October... Unemployment Benefits Exceed 1 Trillion Won for 9 Consecutive Months: “More Cases of Double Claims Before and After the Holiday”

[Financial News] In October, which included the extended Chuseok holiday, the number of people receiving Unemployment Benefits decreased, but the total payout surpassed 1 trillion won for the ninth consecutive month. Analysts attribute this to a spike in claims before and after the holiday, as Unemployment Benefits are typically paid every four weeks. In other words, there were more recipients than usual who claimed benefits twice in October—once at the beginning and once at the end of the month.
According to labor market statistics released by the Ministry of Employment and Labor (MOEL) on the 10th, the number of Unemployment Benefit recipients in October was 576,000, a decrease of 15,000 (16.2%) compared to the same month last year. However, the total payout increased by 48.6 billion won (4.9%) to 1.0492 trillion won. It is unusual for the number of recipients to decrease while the total payout rises.
Initially, the Ministry of Employment and Labor expected the October Unemployment Benefits payout to decline. The inclusion of the Chuseok holiday, which spanned about a week including weekends, was anticipated to reduce the number of working days at Employment Centers by two, thereby lowering the number of applications and payments.
Contrary to expectations, however, the total Unemployment Benefits paid in October increased compared to the previous year.
Chun Kyung-gi, Director of Future Employment Analysis at MOEL, explained, “Typically, claimants who would have been certified for unemployment around October 3 or 9 came in early on October 1 to receive certification and benefits, and then returned four weeks later—between October 29 and 31—for a second certification and payment.”
For Unemployment Benefits, the first certification date is set within two weeks of filing for unemployment, and subsequent certifications are scheduled every four weeks. In October, this system led to an increase in people claiming benefits more than once within the month.
Chun added, “This phenomenon occurs in months with holidays, such as January, February, September, and October, when certification cycles overlap. The rise in payment rates, higher nominal wages leading to more recipients hitting the maximum payout, and multiple claims are all contributing factors.”
As a result, the monthly Unemployment Benefits payout exceeded 1 trillion won again in October, continuing the record streak set in September. Since February this year, monthly payouts have remained above 1 trillion won for nine consecutive months, with each month surpassing last year’s figures.
MOEL expects the Unemployment Benefits payout in November to fall below 1 trillion won. In November last year, the payout was 846.2 billion won.
Chun said, “If those who would normally have been certified in early November already received certification at the end of October, the November payout should be slightly lower, similar to last year. Although an economic downturn or an increase in payment rates could push the nominal payout higher, it is unlikely to exceed 1 trillion won.”
jhyuk@fnnews.com Kim Jun-hyuk Reporter