SEOUL: South Korea recorded a significant increase in employment for September, marking the third consecutive month of job additions exceeding 100,000. However, the construction sector experienced its most substantial decline on record, according to recent data.
According to Yonhap News Agency, the total number of employed individuals reached 28.84 million, which is an increase of 144,000 from the previous year. The data, compiled by Statistics Korea, highlights a sustained growth in employment, although the pace has slowed compared to the robust gains earlier in the year. In the first two months of 2024 alone, over 300,000 new jobs were added.
The job growth in September was predominantly among older adults, with employment for those aged 60 and over rising by 272,000 on-year. Employment figures also saw an increase for individuals in their 30s and 50s, with additions of 77,000 and 25,000 respectively. Conversely, the youth demographic, particularly those in their 20s and 40s, experienced a reduction in em
ployment opportunities, with decreases of 150,000 and 62,000 respectively.
Significant sectoral shifts were noted, with the information and communications field adding 105,000 jobs, an increase of 10.1 percent, and the science and technology services sector growing by 6.1 percent, or 83,000 jobs. However, the construction sector faced a steep decline, shedding 100,000 jobs, a 4.6 percent decrease and the largest since records began in 2013. This sector has been contracting for five months straight, impacted by high interest rates and adverse weather conditions.
Other sectors such as manufacturing and wholesale and retail also saw job reductions, with the former losing 49,000 jobs and the latter 104,000, marking the sharpest fall since November 2021. These losses reflect ongoing challenges in domestic demand.
Despite these sector-specific downturns, the overall employment rate for those aged 15 and older slightly improved, reaching 63.3 percent, the highest for any September since 1982. The employment rate
for individuals aged 15-64 also increased to 69.9 percent, the highest for September since 1989. However, the employment rate for young people aged 15-29 decreased by 0.7 percentage point to 45.8 percent.
The number of economically inactive individuals rose to 16.22 million, with a significant increase among those taking a break from work, particularly among the younger age group, reflecting the tough job market conditions.
The unemployment rate saw a slight improvement, dropping by 0.2 percentage point to 2.1 percent. In response to the mixed employment landscape, Finance Minister Choi Sang-mok announced during an economy-related ministers’ meeting that the government plans to enhance support for skilled construction workers and extend job training programs for young people, among other tailored measures.