Employment Increased by 173,000 in March... Lowest in 37 Months (Comprehensive)

Statistics Korea Announces 'March Employment Trends'
-50,000 in Agriculture, Forestry, and Fisheries Due to 'Abnormal Weather'
Youth Employment Also Decreases by 130,000

The number of employed people in March this year increased by only 173,000 compared to the same period last year, marking the lowest level in over three years. The impact of abnormal weather was evident in the decline of employment in the agriculture, forestry, and fisheries sectors. Employment among the youth also decreased by about 130,000, the largest drop since July last year.

According to the 'March Employment Trends' released by Statistics Korea on the 12th, the number of employed persons aged 15 and over last month was 28.396 million, an increase of 173,000 (0.6%) compared to the same month last year. Although the monthly employment number has shown an increasing trend for 37 consecutive months since March 2021, the growth rate has slowed down since peaking at 1.135 million in January 2022, marking the lowest level in 37 months since March 2021 during the COVID-19 pandemic. Employment numbers remained in the 300,000 range in February and March. Statistics Korea explained that this was due to a base effect from the significant increase in employment last March and a decrease in employment in the agriculture, forestry, and fisheries sectors caused by lower temperatures.

The decrease in employment was particularly notable in agriculture, forestry, and fisheries (-50,000). This sector experienced the largest decline since March 2017, when it decreased by 56,000. Seounju, Director of the Social Statistics Bureau at Statistics Korea, stated, "There were more rainy days compared to March last year," adding, "The decrease in temperature and reduced sunlight led to a significant drop in employment." Employment also declined in business facility management, business support and rental services (-51,000), and education services (-33,000). However, employment increased in professional, scientific and technical services (98,000), information and communication (67,000), and transportation and warehousing (58,000). Manufacturing also rose by 49,000, continuing its upward trend for four consecutive months due to favorable semiconductor production.

Youth Employment Declines Most Since July Last Year... Employment Rate for Late 20s at 72.8%

By age group, employment among youth (15-29 years old) decreased by 131,000, the largest decline. This is the biggest drop since July last year (-138,000). The youth employment rate fell by 0.3 percentage points to 45.9%, returning to a downward trend after six months. Director Seo diagnosed, "There is a trend of preferring experienced hires in the job market, moving from the 20s to the 30s." However, he added, "Considering the youth population decreased by 2.7%, the youth employment rate as of March is not at a low level."

A Ministry of Economy and Finance official also stated, "It is necessary to look at the youth in their early 20s and late 20s separately," adding, "The employment rate for those in their late 20s has risen for 36 consecutive months." The employment rate for late 20s (25-29 years old) increased by 0.9 percentage points to 72.8%. In contrast, the employment rate for 20-24 years old fell by 0.8 percentage points to 44.4%. The youth unemployment rate also decreased by 0.6 percentage points year-on-year to 6.5%.

Employment among those in their 40s also decreased by 79,000. Director Seo analyzed, "Employment in growing industries such as telecommunications is relatively low among people in their 40s, while the core workforce in manufacturing and wholesale and retail sectors is in their 40s, which seems to have influenced the results." On the other hand, employment among those aged 60 and over increased by 233,000. Employment among those in their 30s and 50s also rose by 91,000 and 59,000, respectively. By employment status, permanent wage workers increased by 286,000, temporary workers by 97,000, but daily workers decreased by 168,000.

Government Emphasizes Employment Rate and Labor Force Participation Rate as "Highest Ever for March"

The Ministry of Economy and Finance evaluates that although the rapid increase in employment has somewhat adjusted recently, the employment rate and labor force participation rate continue to show favorable trends, recording the highest levels ever for March. The employment rate for those aged 15 and over was 62.4%, up 0.2 percentage points from a year ago, the highest for March since monthly statistics began in July 1982. The OECD-comparable employment rate for ages 15-64 was 69.1%, up 0.4 percentage points year-on-year. The labor force participation rate rose by 0.2 percentage points to 64.3%, the highest for March since related statistics began in January 1989.

The overall unemployment rate was 3.0%, up 0.1 percentage points year-on-year. The number of unemployed was 892,000, an increase of 52,000 compared to the same month last year. The economically inactive population decreased by 63,000 (0.4%) from a year ago, totaling 16.242 million. A Ministry of Economy and Finance official stated, "The rapid increase in employment seen in January and February last year has somewhat adjusted," adding, "As the economic recovery centered on exports spreads, the employment improvement trend is expected to continue."