Hit hardest by the fallout of the coronavirus pandemic, South Korea’s jobless rate rose to the highest level in two decades, while many people were forced to quit jobs amid strained business activities.
The country’s economically inactive population, or people who are capable of working but choose not to seek jobs, rose by 502,000 year-on-year to a record 16.55 million in July, according to data compiled by Statistics Korea on Wednesday.
That marks the highest level since the statistical office began compiling such data in 1999. Those categorized as “resting” also surged to a record high of 2.31 million, with the number rising in all age groups.
The economically active population totaled 28.2 million, down 236,000 on the year, extending its slide for the fifth straight month, data showed.
Government data released on Monday showed that as more people were losing jobs,
the country’s jobless claims payments topped 1 trillion won ($842 million) for the third consecutive month in July, threatening to widen the shortfalls of the state employment insurance funds to as much as 3.3 trillion won by year’s end.