Weakening Economic Backbone: Record Drop in 40s Employment Insurance Subscribers

While the total number of employment insurance subscribers has increased, the number of subscribers in their 40s and 20s has dropped to a record low.

While the total number of employment insurance subscribers has increased, the number of subscribers in their 40s and 20s has dropped to a record low. This decline is attributed to factors such as population decline and sluggish economic conditions in certain industries. In this post, we will explore the reasons behind the decrease in employment insurance subscribers in their 40s and 20s, its impact, and possible solutions to address the issue.

According to the Ministry of Employment and Labor's employment statistics for August 2024, the number of employment insurance subscribers in their 40s has reached a record low. Similarly, the number of subscribers in their 20s has continued to decline, with a noticeable decrease in both age groups. Although the total number of employment insurance subscribers increased by 1.4%, the growth rate is gradually slowing.

As of the end of August 2024, the total number of employment insurance subscribers stood at 15.44 million, but the number of 40s subscribers was 3.537 million, a 1.2% (42,000) decrease from the previous year. This marks the 10th consecutive month of decline in the 40s age group, with August seeing the largest drop on record. The number of subscribers under 29 also dropped by 4.2% (103,000), marking the 24th consecutive month of decline.

The decrease in employment insurance subscribers in their 40s is not only due to population decline but also reflects a reduction in employment in industries such as construction and retail. The downturn in these sectors, coupled with the real estate project financing (PF) crisis, has exacerbated the decline in 40s employment. The decline among those under 29 has also been significant, with a steady increase in the rate of decrease since April.

By industry, manufacturing and service sectors saw an increase in employment insurance subscribers, while the construction sector experienced a decline. Construction has now seen 13 consecutive months of declining subscribers, and retail and information technology sectors also reported a reduction in employment.

On the other hand, the number of new employment insurance subscribers among foreign workers has increased. In August, the total number of employment insurance subscribers rose by 220,000, with 46,000 new foreign subscribers, outpacing the increase in domestic workers.

The decline in employment insurance subscribers among those in their 40s and under 29 reflects a weakening of the "economic backbone" of the country. This trend, driven by population decline and economic stagnation, highlights the need for fundamental economic solutions and a restructuring of the labor market. It is essential to implement effective employment policies that target both 40s and 20s workers, ensuring a stable economic foundation for the future.