Employment Increases by Over 350,000 for Two Consecutive Months... Is a Job Market Boom Coming? (Comprehensive)

Employment Trends Announced by Statistics Korea on the 14th
Number of Employed Increased by 351,000
Employment Rate Hits Highest Since 1989 Statistics
Unemployment Rate Records Lowest Since 1999

In May, the number of employed people increased by 351,000 compared to a year ago. The unemployment rate was 2.7%, the lowest level for May since 1999. Although it was expected that the number of employed people would decrease this year due to the base effect of an 810,000 increase last year, the employment market is surprisingly stable as outdoor activities have increased.

According to the employment trends for May announced by Statistics Korea on the 14th, the number of employed people last month was 28,835,000, an increase of 351,000 compared to the same month last year. Although this is slightly less than the increase in April (354,000), it marks the 27th consecutive month of growth since March 2021. The employment rate (OECD) for those aged 15-64 was 69.4%, up 0.3 percentage points from the same month last year. This is the highest level for May since related statistics began in 1989. The employment rate for those aged 15 and over also rose by 0.5 percentage points to 63.5%, the highest since monthly statistics began in July 1982.

The expansion in employment in May was driven by the health and social welfare services sector (166,000) and the accommodation and food services sector (128,000). Seounju, Director of the Social Statistics Bureau at Statistics Korea, explained, "The employment rate indicator is at its highest level since statistics began," adding, "While it is not easy to say it is a state of full employment, it is known to be at the OECD average level."

However, manufacturing and construction industries performed poorly among all industries. Due to continued sluggish semiconductor exports, the number of employed in manufacturing decreased by 39,000 compared to the same month last year, marking five consecutive months of decline. Employment in construction also fell by 66,000, the largest drop since November 2019 (-70,000). Director Seounju said, "Construction orders have significantly decreased," and added, "The decline in construction employment was influenced by delays in construction projects due to the downturn in the real estate market."

By employment status, the number of regular workers increased by 591,000, while temporary workers decreased by 158,000 and daily workers by 133,000, showing a positive trend. Among non-wage workers, self-employed persons with employees increased by 53,000, and self-employed persons without employees increased by 41,000.

The number of employed youth aged 29 and under continued to decline for the seventh consecutive month, decreasing by 99,000 compared to the same month last year. However, the decrease in youth employment was smaller than in April (137,000).

The number of unemployed people was 787,000, down 102,000 from the same month last year. This is the lowest number for May since 2008 (761,000). The unemployment rate fell by 0.3 percentage points to 2.7%, the lowest May figure since June 1999, when the job-seeking period was changed from one week to four weeks.

The economically inactive population was 15,756,000, a decrease of 115,000. Although there was an increase in those who "rested" (181,000), decreases were seen in the elderly (-152,000) and childcare (-146,000) categories.

Director Seounju commented on the future employment market, saying, "The increase in outdoor activities and tourists will have a positive impact on face-to-face industry employment," but added, "Economic factors such as exports and inflation may act negatively."