Statistics Korea, July Employment Trends
Construction Sector Employment Drops Most Since 2013
Last month, the increase in the number of employed people exceeded 100,000 for the first time in three months, recovering to double digits. However, the number of employed persons in the construction industry decreased at the largest rate in 11 years, and the number of self-employed without employees declined for the 11th consecutive month, highlighting the growing difficulties faced by vulnerable employment groups.
According to the 'July Employment Trends' released by Statistics Korea on the 14th, the number of employed persons aged 15 and over last month was 28,857,000, an increase of 172,000 compared to the same month last year. The increase in the number of employed persons had fallen below 100,000 for two consecutive months in May (80,000) and June (96,000), but recovered to the 100,000 level again after three months. However, this figure is still below the levels seen in March (173,000) and April (261,000).
By industry, the decrease in the number of employed persons in the construction sector was notable. The number of employed persons in construction decreased by 81,000 compared to the same month last year, marking the largest decline since the 7th industrial classification revision in 2013. The construction sector recorded negative growth for three consecutive months following May (-47,000) and June (-66,000). The manufacturing sector, which had maintained growth for seven months, also turned to a decline with a decrease of 11,000 employed persons.
Seo Woon-joo, Director of the Social Statistics Bureau at Statistics Korea, analyzed, “The decline in construction employment may have been influenced by the worsening construction market and the heatwaves and heavy rains in July.” He added, “Employment in general construction has been continuously decreasing, and specialized construction businesses have also been declining consecutively for three months.” This indicates that the slowdown in construction orders is expanding the scale of employment reduction. A Ministry of Economy and Finance official also stated, “The decrease in apartment move-in volumes in June and July appears to have affected the decline in employment in specialized construction businesses and the construction industry.”
The number of employed persons in manufacturing decreased by 11,000 (0.2%). Director Seo explained, “While employment among those under 40 has decreased, employment among those in their 50s and 60s and older has increased, and there are differences by sector within manufacturing.”
Employment increased in health and social welfare services (117,000), information and communications (82,000), and transportation and warehousing (65,000). Director Seo explained, “In transportation and warehousing, increases in travel and aviation have led to greater demand for warehousing, which is linked to the rise in employment. The digitalization of industries has increased demand for video content, leading to growth in jobs in information and communications.” The Ministry of Economy and Finance stated that the service sector led the employment increase in July, with employment in services rising for the 41st consecutive month. The number of employed persons in services increased by 286,000 in July, up from 183,000 in June, expanding the growth rate.
The decline in self-employed persons also continued. Non-wage workers have been decreasing for five consecutive months since February (-57,000), with a reduction of 80,000 in July. In particular, self-employed persons without employees decreased by 110,000, marking 11 consecutive months of decline since September last year (-20,000). On the other hand, self-employed persons with employees increased by 48,000 last month, following a rise of 34,000 in June.
By age group, the number of employed youth (aged 15-29) decreased by 149,000. Youth employment has declined for 20 consecutive months since November 2022. The youth employment rate also fell by 0.5 percentage points. Conversely, employment among those aged 60 and over increased by 278,000. Employment also rose by 110,000 among those in their 30s and by 23,000 among those in their 50s.
Kim Beom-seok, 1st Vice Minister of the Ministry of Economy and Finance, said, “The increase in employment in July recovered to double digits, strengthening the employment growth trend compared to May and June.” He added, “The significant expansion in employment in the service sector led the overall employment increase.” He continued, “Although overall employment indicators are favorable, the continued decline in employment in construction and self-employment, as well as ongoing difficulties among vulnerable groups including youth, require close monitoring and response by the government’s inter-ministerial job task force.”
The government plans to strengthen tailored job support for vulnerable sectors as the decline in employment in construction and self-employment continues. It will continue to implement the comprehensive measures for small business owners announced on the 2nd of last month to support their reemployment and new beginnings, and will promptly pursue the housing supply expansion plan announced on the 8th to supplement demand for construction jobs.
The employment rate for those aged 15 and over was 63.3%, up 0.1 percentage points from a year earlier. This is the highest figure for July since monthly statistics began in 1982. The number of unemployed persons was 737,000, down 70,000 from the same month last year. The unemployment rate also fell by 0.2 percentage points to 2.5%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
