Employment Rate (63.1%) and Unemployment Rate (2.3%) Reach All-Time High and Low as of November
Last month, the number of employed people increased by 277,000, continuing the upward trend for 33 consecutive months. However, the rate of increase slowed down for the first time in four months. This was due to a reduction in the growth of employment in the accommodation and food service industry, which had seen a significant increase last year, and the manufacturing sector's employment decline continuing for the 11th consecutive month. The decrease in the working-age population also had an impact. Nevertheless, the employment rate and unemployment rate recorded the highest and lowest levels respectively as of November, indicating a stable employment market atmosphere.
According to the 'November Employment Trends' released by Statistics Korea on the 13th, the number of employed people last month was 28,698,000, an increase of 277,000 compared to the same month last year. Employment has increased for 33 consecutive months since March 2021, but the rate of increase shifted to a slowdown after four months. The increase in employment had expanded consecutively in August (268,000), September (309,000), and October (346,000).
The significant factor was the reduced increase in employment in the accommodation and food service industry due to the base effect. Employment in this sector increased by 231,000 in November last year, but only by 7,000 this month. Seounju, Director of the Social Statistics Bureau at Statistics Korea, explained, "The slowdown in the increase is due to the fading base effect of post-COVID-19 normalization," adding, "The annual increase in employment remains at a high level." A Ministry of Economy and Finance official added, "Since the decrease in employment is affected by population decline, it is necessary to look at figures such as the employment rate."
The industry group with the largest decrease in employment was education services (-57,000), reflecting the reduction of COVID-19-related educational site quarantine personnel until last year. Manufacturing (-11,000) also continued its decline for 11 consecutive months since January this year. Director Seo stated, "In manufacturing, employment decreased particularly in metal and semiconductor-related electronic equipment sectors." However, employment increased in professional, scientific, and technical services (89,000) and health and social welfare services (85,000).
The government emphasized that despite the decrease in the working-age population (-286,000), the employment market is maintaining a stable trend. The Ministry of Economy and Finance diagnosed, "Although the increase in employment slowed, the decline in manufacturing employment significantly narrowed, and construction employment has increased for three consecutive months," adding, "A favorable trend continues." They noted that manufacturing employment decreased by 77,000 in October, but the reduction in the decline is noteworthy. Construction employment increased by 32,000.
Job seekers participating in the '2023 Gangnam-gu Job Fair' held at the Gangnam Employment and Startup Hub Center in Seoul on the 13th are looking at the recruitment bulletin board. Photo by Jinhyung Kang aymsdream@
The employment rate showed a robust performance, recording an all-time high as of last month. The overall employment rate for those aged 15 and over rose by 0.4 percentage points to 63.1%, the highest November figure since monthly statistics began in July 1982. The OECD-standard employment rate for ages 15-64 was 69.6%, up 0.6 percentage points, marking the highest November level since related statistics began in 1989.
The unemployment rate remained at 2.3%, the same as the previous year, which is the lowest November level since statistics began in June 1999. The number of unemployed increased by 11,000. Director Seo analyzed, "The number of unemployed increased for the first time in 32 months," but added, "Since employment continues to rise, this is basically due to base effects." The number of unemployed was 677,000, the third lowest ever recorded.
The youth employment market atmosphere is also not unfavorable. The youth employment rate (46.3%) and youth unemployment rate (5.3%) recorded the highest and lowest levels respectively for November. Despite a population decline (-174,000), the decrease in youth employment has narrowed for four consecutive months. The Ministry of Economy and Finance forecasted, "Going forward, the employment market is expected to continue increasing employment centered on the service sector as the care market expands."
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