Job Polarization... Sharp Decline in Employment for Youth, Men, and Manufacturing Workers

Polarization in the labor market has recently intensified. While employment among women, the elderly, and service industry workers has increased, employment among men, youth, and manufacturing workers continues to decline.

According to Statistics Korea on the 17th, the number of employed people last month was 28.678 million, an increase of 268,000 compared to the previous year. The employment rate for those aged 15 and over was 63.1%, up 0.3 percentage points from the same month last year, marking the highest level for August since monthly statistics began in 1982. The unemployment rate for those aged 15 and over was 2.0%, down 0.1 percentage points. Last month, the number of unemployed was 573,000, showing the lowest unemployment rate and number of unemployed since the statistical standard change in June 1999.

In particular, women and the elderly led the expansion of employment. Last month, the number of employed women increased by 281,000 (2.3%), and the number of employed people aged 60 and over rose by 304,000, the largest increase among all age groups. During the same period, employment in the service sector reached 3.513 million, an increase of 217,000 (6.6%) compared to the same month last year, and employment in health and social welfare industries also rose by 138,000 (4.9%) to 2.924 million. Statistics Korea analyzed that the increase in employment continues due to rising demand for care and increased outdoor activities, and that the growth in employment, which had slowed due to heavy rains in July, expanded again last month.

On the other hand, during the same period, male employment decreased by 13,000 (-0.1%) compared to the same month last year. Employment and unemployment among youth aged 15 to 29 also decreased by 103,000 and 44,000 respectively. The economic activity participation rate for youth fell to 49.2%, and the youth employment rate (47%) dropped by 0.3 percentage points compared to a year ago. The youth were the only age group to experience a decline in employment rate across all age groups. The sluggishness in manufacturing employment has continued for eight months. Last month, manufacturing employment was 4.46 million, down 69,000 from the same month last year. Employment in construction has also been declining for nine consecutive months.

Concerns are growing about the deterioration in the quality of employment as the elderly, rather than youth who will lead future generations, and the service sector, which has lower employment stability than manufacturing, show higher employment rates. Experts advise structural reforms to improve corporate productivity. Professor Kang Sung-jin of Korea University’s Department of Economics said, "A high employment rate amid low growth means that the expansion of quality jobs created by the market is not happening properly," adding, "It is necessary to remove various regulations that constrain companies to boost economic vitality."