Policies · 2 sources combined
Employment crisis auto-detected
Based on five indicators
In short
The government has decided to automatically detect nationwide employment crises using five indicators.
If three or more of them, including employment rate and unemployment rate, worsen for two consecutive months, it is considered a crisis.
If deemed a crisis, the government can increase employment maintenance support funds provided to businesses.
Key facts
| When | The amended Employment Insurance Act takes effect from May 2026, and the research report on judgment criteria was released on November 1. |
|---|---|
| Who | The Ministry of Employment and Labor commissioned the Korea Labor Economic Association to develop the judgment criteria. |
| What | If three or more of five indicators—including employment rate and unemployment rate—exceed the standard for two consecutive months, it is deemed a crisis. |
| How | If deemed a crisis, employment maintenance support funds are expanded after deliberation. |
What it means for me
Whether to expand employment maintenance support funds during management difficulties is decided faster based on statistical criteria.
When companies suspend or furlough operations, expanded support funds increase the likelihood of maintaining employment.
If sales drop by more than 15%, the likelihood of receiving support funds increases when a nationwide crisis is declared.
