A study has revealed that approximately 240,000 non-regular workers have increased due to the unemployment benefit system changed in October 2019, and there are calls to restore the level of unemployment benefits to the transfer level.
The Fighter Touch Research Institute analyzed the impact of unemployment benefits on non-regular workers on the 18th and made such policy recommendations.
The current unemployment benefit system extends the payment period from 90-140 days to 120-270 days since October 2019 and has increased the benefit amount from 50% to 60% of the average wage over the previous three months.
According to the analysis, a 1 percentage point increase in the proportion of unemployment benefits compared to the average wage received before unemployment results in a 0.01-0.13 percentage point increase in the proportion of non-regular workers.
Applying this to the recently changed unemployment benefit system, it appears that non-regular workers have increased by 241,000 due to the increased unemployment benefits.
The total amount of unemployment benefits paid also increased by about 80%, from 6.7 trillion won in 2018 to 11.8 trillion won in 2023.
Moreover, due to the high level of unemployment benefits, a reversal phenomenon has occurred where beneficiaries receive a minimum monthly amount of 1,893,120 won, which is higher than the net monthly salary of 1,843,463 won for a worker earning the minimum wage and working 209 hours per month as of 2024.
The Research Institute pointed out that this abnormal phenomenon, where working individuals receive less, is unique among member countries of the Organisation for Economic Co-operation and Development (OECD).
Majihyun, a senior researcher at the Fighter Touch Research Institute, noted, "The increase in unemployment benefits leads to an increase in non-regular workers, so the current level of unemployment benefits should be adjusted to the transfer level, and the eligibility requirements must be strengthened."