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Jobless rate already on the rise in S. Korea’s distressed shipbuilding regions

Collected: 2016.04.29

Distributed: 2016.05.02

Source: Go Direct

Unemployment is shooting up in Ulsan, southern coastal region in Korea and home to the country’s shipyards battered with dearth of new work and facing sweeping restructuring or court receivership. Upsurge in joblessness is inevitable once restructuring goes into full gear.

According to labor ministry’s data on people applying for between-job subsidies in the first quarter on Thursday, new applicants totaled 307,270, increasing by 3,853 or 1.3 percent from the same period last year. Ulsan accounted for the biggest share in new entries with 9,454, up 18.2 percent on year and nearly doubling 5,338 in the fourth quarter.

North Gyeongsang Province region and South Chungcheong Province trailed with respective on-year growth of 8.0 percent and 6.2 percent. Entries from Seoul and Incheon fell 1.7 percent and 4.0 percent, respectively.

Application for between-job allowances has greatly increased from Ulsan due to job insecurity, said an official from the labor ministry.

Industry watchers estimate about 31,000 people, or 15 percent of total 200,000-manned work force in shipbuilding could find themselves out of job when restructuring affects the three major dockyards - Hyundai Heavy Industries Co., Samsung Heavy Industries Co., Daewoo Shipbuilding and Marine Engineering Co., - and hundreds of their subcontractors.

The labor ministry is mulling to designate shipbuilding as a special unemployment support industry to provide state-led aid program.

By Seo Dong-cheol

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