Last Year Employment Increased Most in 22 Years but Growth Slows for 7 Consecutive Months (Update)

[Asia Economy Sejong=Reporter Kim Hyewon, Sejong=Reporter Lee Junhyung] The annual number of employed persons increased at the largest rate in 22 years last year.

Overall employment showed strong growth due to the lifting of COVID-19 social distancing measures and other factors, but the pace of increase slowed from the second half of the year, raising widespread concerns about an employment downturn this year.

According to the 'December 2022 and Annual Employment Trends' released by Statistics Korea on the 11th, the annual number of employed persons last year was 28,089,000, an increase of 816,000 from the previous year.

The annual number of employed persons sharply declined by 218,000 in 2020 when COVID-19 broke out, marking the largest decrease in 22 years since 1998 (-1,276,000), but it turned to a significant increase last year (369,000) and this year.

The increase in the number of employed persons last year was the largest in 22 years since 2000 (882,000). It also greatly exceeded the government's forecast of 280,000 presented in December 2021.

By industry, employment growth was led by health and social welfare (180,000), manufacturing (135,000), accommodation and food services (84,000), and information and communications (80,000). On the other hand, employment decreased in wholesale and retail trade (-41,000) and finance and insurance (-26,000).

The employment rate for those aged 15 and over rose by 1.6 percentage points from a year earlier to 62.1%. The number of unemployed persons last year was 833,000, down 205,000 from the previous year. The unemployment rate fell by 0.8 percentage points to 2.9% compared to the previous year.

The economically inactive population was 16,339,000, a decrease of 432,000.

Employment indicators in December continued to slow. The number of employed persons in December was 27,808,000, an increase of 509,000 from a year earlier, but the pace of increase slowed for seven consecutive months. The year-on-year increase in employed persons has been declining for seven months from June (841,000), July (826,000), August (807,000), September (707,000), October (677,000), November (626,000), to December (509,000).

Gong Misook, Director of the Social Statistics Bureau at Statistics Korea, analyzed, "In 2022, there was a steady increase in employment due to increased activities following the recovery of daily life, exports, and demand for care services. However, due to domestic and international economic conditions and base effects, the pace of employment growth slowed in the second half of the year."