Last Year's Employment Rate Hits Record High... Number of Employed Increased by 327,000 (Comprehensive)

Endemic Daily Life Recovery... Increase in Health-Related Employment
Employment Among Elderly Also Rises... Growth Rate Half of Previous Year

Last year, the employment rate reached an all-time high. It was the highest level since related statistics began to be compiled. The increase in the number of workers in the healthcare industry was largely influenced by the rising demand for care services, thanks to the recovery of daily life following the endemic (periodic outbreak of infectious diseases). Employment among the elderly also increased. However, the increase in the number of employed people was less than half of the previous year's increase of over 800,000.

According to the "2023 Annual Employment Trends" released by Statistics Korea on the 10th, the employment rate for those aged 15 to 64 (based on the Organisation for Economic Co-operation and Development (OECD) standards) was 69.2% last year, marking the highest level since related statistics began in 1989. The employment rate for those aged 15 and over was also the highest since annual statistics began in 1963, at 62.6%. The overall unemployment rate was 2.7%, down 0.2 percentage points from the previous year. The unemployment rate continued a favorable employment trend, decreasing from 3.7% in 2021 and 2.9% in 2022.

The scale of the increase in the number of employed people slowed significantly compared to the previous year (816,000). Last year, the number of employed people aged 15 and over was 28,416,000, an increase of 327,000 from the previous year. The number of employed people decreased by 218,000 in 2020 when the COVID-19 pandemic began, then increased by 369,000 in 2021 and 816,000 in 2022.

The driving force behind the favorable employment market last year was the healthcare and social welfare services sectors. Employment in these sectors increased by 143,000 (5.3%), showing the largest growth. Seounju, Director of the Social Statistics Bureau at Statistics Korea, explained, "As the demand for care services increases due to aging and low birth rates, labor demand in the private healthcare and welfare sectors continues to grow," adding, "The healthcare and welfare sectors also accounted for a large proportion of government-provided jobs." Employment in accommodation and food services also increased by 114,000 (5.2%) due to the recovery of daily life, and employment in professional, scientific, and technical services rose by 70,000 (5.4%).

However, employment in manufacturing, classified as quality jobs, decreased by 43,000 (0.9%) last year. After an increase of 135,000 in 2022, it turned to a decline within a year. This was the largest decrease since 53,000 jobs were lost in 2020. Employment in the chemical and electronics sectors declined due to reduced exports. Employment in wholesale and retail trade also decreased by 37,000 (1.1%). The number of employed people in wholesale and retail trade has been declining for six consecutive years since 2018, influenced by the activation of online transactions.

Last year's employment market was characterized by the strong presence of the elderly aged 60 and over and women. Looking at the year-on-year changes in employment by age group, employment increased by 366,000 among those aged 60 and over. In contrast, the increases were only 59,000 for those in their 50s and 54,000 for those in their 30s. Notably, 204,000 women aged 60 and over accounted for more than two-thirds of the total employment increase of 303,000. Director Seo explained, "As life expectancy increases among the elderly, their population is growing, which strongly influences their entry into the labor market," adding, "Moreover, the employment market in the healthcare and welfare sectors where they work is expanding." The Ministry of Economy and Finance explained that despite last year's economic downturn, employment remained favorable due to the entry of women and the elderly into the labor market.

The number of employed young people declined. The total number of employed youth (aged 15 to 29) decreased by 98,000. In particular, employment among those in their 20s dropped by 82,000. Statistics Korea attributed this to a sharp decline of 177,000 in the youth population. Director Seo stated, "We need to consider the impact of the declining youth population," and added, "It is important to focus on the employment rate figures adjusted for population effects, which show that the youth employment rate was at a similar level to 2022, when it reached the highest point since December 1996." Last year, the youth employment rate was 46.5%, slightly down from 46.6% the previous year. The increase in female employment was also notable. By gender, male employment increased by 24,000 compared to the previous year, while female employment increased by 303,000.