Statistics Korea January Employment Trends... Employment Increased by 380,000
Impact of Care Demand and Job Projects... Manufacturing Also on the Rise
Youth Employment Decreased by 85,000 and Unemployment Increased for 3 Consecutive Months
The number of employed people last month increased by 380,000 compared to the same period last year, recovering to the 300,000 level for the first time in three months. The employment rate for those aged 15 and over reached 61.0%, the highest ever recorded for January. This was largely due to increased demand for care services and the expansion of government job programs. Employment in the manufacturing sector also maintained an upward trend for the second consecutive month. However, youth employment contracted, and the number of unemployed people increased for the third consecutive month.
According to the 'January Employment Trends' released by Statistics Korea on the 16th, the number of employed people last month was 27,743,000, an increase of 380,000 compared to the same period last year. This marks 35 consecutive months of growth since March 2021. The increase in the number of employed people had fallen to the 200,000 range in November (277,000) and December (285,000) after reaching 346,000 in October last year, but recovered to the 300,000 range again after three months. The number of employed people aged 15 and over was 27,743,000, up 380,000 from the same month last year.
The increase in employment was driven by the health and social welfare services sector (104,000), construction (73,000), and professional, scientific, and technical services (73,000). Seo Woon-ju, Director of the Social Statistics Bureau at Statistics Korea, analyzed, “As demand for care services increases in the market, combined with the impact of government job programs, employment growth in the health sector has continued,” and added, “Despite the downturn in the construction industry, employment increased significantly, especially in specialized fields.”
According to the Ministry of Employment and Labor, last month, 747,000 people were hired through direct job programs, exceeding the target by 28,000. The average number of days worked in construction decreased from 3.4 days last year to 1.3 days, likely due to warmer weather. Employment in manufacturing also increased by 20,000, maintaining growth for two consecutive months since December last year. On the other hand, employment decreased in business facility management, business support and rental services (-45,000), real estate (-28,000), and education services (-13,000). Business facility management refers to building management and security personnel.
Youth employment contracted. The number of employed youth (aged 15-29) decreased by 85,000 compared to the same month last year, continuing a decline for 15 consecutive months since November 2022 (-5,000). Conversely, employment among those aged 60 and over increased by 350,000, with 192,000 in their 60s and 158,000 aged 70 and above. The Ministry of Economy and Finance explained, “The decrease in youth employment is due to population decline (-218,000), but the employment rate for those in their late 20s (72.7%) recorded the highest level for 25 consecutive months.”
The employment rate remained robust. The employment rate for those aged 15-64, the OECD comparison standard, rose by 0.9 percentage points from a year ago to 68.7%. Although slightly lower than November (69.6%) and December (69.2%) last year, it was the highest for the same month since 1989. The overall employment rate for those aged 15 and over was 61.0%, up 0.7 percentage points from the same month last year, marking the highest January figure since monthly statistics began in July 1982.
However, the number of unemployed people increased by 48,000 to 1,072,000, marking a rise for the third consecutive month since November last year. The unemployment rate also rose by 0.1 percentage points to 3.7%. The scale of unemployment was the largest since January 2022, when it was 1,143,000. Director Seo said, “The cumulative base effect from the large decrease in the number of unemployed people in 2022 and last year as of January,” and added, “During the survey period, some public institution recruitment took place, and those engaged in job-seeking activities may be counted as unemployed.”
Director Seo evaluated, “With the increase in government job programs, employment growth is being driven mainly by the information and communication sector, a new growth industry.” The Ministry of Economy and Finance stated, “Going forward, the employment market is expected to maintain a stable trend with continued growth in service sector employment due to expanding care demand,” and added, “We will closely monitor risk factors such as geopolitical instability and sluggish construction orders.”
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