South Korea’s employment growth hits five-month high in August

The number of employed people reached 29.15 million last month, up from 28.97 million a year earlier, according to data released by the Ministry of Data and Statistics. The increase was the largest since March, when employment grew by 206,000 jobs year on year.

August marked the third consecutive month of employment gains, although some major industries continued to struggle.

The country’s unemployment rate stood at 2 percent in August, unchanged from a year earlier. The number of unemployed people fell by 4,000 to 588,000.

South Korea’s employment rate for people aged 15 and older remained at 63.3 percent. However, the employment rate for those aged 15 to 29 fell 1 percentage point year on year to 44.1 percent, marking the 28th consecutive month of decline.

By comparison, the employment rate for people aged 30 to 39 rose 0.3 percentage point to 81.1 percent.

The manufacturing sector shed 38,000 jobs in August, extending its decline for a 26th consecutive month.

Employment also fell sharply in agriculture, forestry and fisheries, which lost 109,000 jobs, while the construction industry shed 32,000 positions.

The accommodation and restaurant sector lost 61,000 jobs. The Ministry of Data and Statistics attributed the decline partly to a base effect stemming from government vouchers distributed in the previous year.

Several sectors recorded employment gains. Healthcare and social welfare added 186,000 jobs, while arts, sports and recreation-related services gained 73,000.

“Jobs in sectors popular among young people, such as manufacturing, declined, leading to an overall decrease in the number of employed people in the age group,” said Bin Hyun-joon, a senior statistics official.

Bin also noted that more young people applied for police and local civil service examinations during the survey period as employment prospects remained difficult.

The number of economically inactive people increased by 77,000 from a year earlier to 16.29 million.

At the same time, the number of people who reported that they were not working and were simply “resting” fell by 89,000 to 2.55 million.

The data ministry said some people who had previously been classified as simply resting had begun actively searching for jobs, resulting in their reclassification as unemployed.

The Finance Ministry said the decline in the number of young people classified as “resting” could be an early sign of improvement in the cycle of training, job searching and employment, although it cautioned that the trend requires further monitoring.

“While we need to take a wait-and-see approach to the recent decline in the number of young people who are simply resting, it could still be seen as a sign of recovery in the cycle of training, job searching and employment,” the ministry said.

However, it stressed that key indicators for young people, including employment levels and the employment rate, remain weak. The government therefore plans to focus on ensuring that the decline in the number of young people outside the labor force translates into broader improvements in employment conditions.

Earlier, Qazinform reported South Korea’s nominal GDP posted the fastest growth in 47 years.