Statistics Korea August Employment Trends
Number of Employed Increases by Over 100,000 for Second Consecutive Month
The increase in the number of employed persons remained in the 100,000 range for two consecutive months. The growth in employment numbers shrank compared to the previous month (172,000) due to a decrease in construction jobs. Additionally, the population classified as 'resting,' who are not actively seeking jobs, reached a record high amid extreme heat and other weather anomalies.
According to the 'August Employment Trends' released by Statistics Korea on the 11th, the number of employed persons aged 15 and over last month was 28,801,000, an increase of 123,000 (0.4%) compared to the same month last year. The employment increase, which exceeded 300,000 at the beginning of the year, fell below 100,000 for two consecutive months in May (80,000) and June (96,000), recovered to the 100,000 range in July (172,000), but the increase in August declined.
By industry, the decrease in construction employment was prominent. The number of employed persons in construction decreased by 84,000 compared to the same month last year, slightly widening the decline from the previous month (81,000). This is the largest drop since the 10th industrial classification revision in October 2013. Construction employment has been declining for four consecutive months since May (-47,000) and June (-66,000), with the decrease intensifying.
Statistics Korea analyzed that the slowdown in construction orders, combined with extreme heat and other weather anomalies, contributed to this trend. Seo Woon-ju, Director of the Social Statistics Bureau at Statistics Korea, stated, "While employment in general construction continues to decline, the specialized construction sector has also shifted to a decrease since May, which seems to have added to the impact." Employment in agriculture, forestry, and fisheries, where outdoor activities must be avoided due to the heat, decreased by 40,000, and employment in wholesale and retail trade also fell by 55,000, marking six consecutive months of decline since March this year.
Employment in manufacturing also recorded negative growth for two consecutive months. The number of employed persons in manufacturing decreased by 35,000, expanding the decline from July (-11,000). Director Seo noted, "Manufacturing employment increased earlier this year but has decreased over the past two months, with the decline widening compared to the previous month. There are differences by age group and industry sector; employment increased in food and automobile industries, while the decline widened in clothing and pharmaceutical manufacturing."
On the other hand, employment increased in information and communication (101,000), professional, scientific, and technical services (94,000), and transportation and warehousing (94,000).
Non-wage workers continued to decline for six consecutive months since February (-57,000), decreasing by 67,000 in August as well. Self-employed persons without employees saw a smaller decrease than the previous month (-110,000), but still declined by 64,000 in August, marking 11 consecutive months of decline.
Among the economically inactive population who have given up job seeking, the 'resting' group without specific reasons increased by 245,000 compared to a year ago. This is the largest scale recorded for August since related statistics began in 2003. The resting population has been increasing for six consecutive months. Director Seo explained, "The proportion of those aged 60 and over among the resting population has significantly increased. About 140,000 of the resting population are in their 60s, which appears to be influenced by the extreme heat."
Extreme heat and other weather anomalies also affected the reduction in average working hours. The average weekly working hours were 34.1 hours, 1.5 hours less than the same month last year, and temporary leave increased by 185,000 to 742,000. It seems that guidelines to refrain from outdoor activities due to heat affected fields such as public administration. Among workers by employment status, daily wage workers among wage earners decreased by 101,000. Similarly, they were affected by the heat in work environments with frequent outdoor activities.
The employment rate for youth (ages 15?29) was 46.7%, down 0.3 percentage points from the same month last year, continuing a decline for four consecutive months. Director Seo analyzed, "The decrease in youth employment is largely due to population decline, and the employment rate decline seems to be because the hiring market increasingly prefers experienced workers." However, he added, "The employment rate for those in their late 20s is reaching record highs, so the overall youth employment rate is not particularly low." The employment rate for ages 25?29 rose 0.5 percentage points to 73.0% compared to the previous year.
The employment rate for those aged 15 and over was 63.2%, up 0.1 percentage points from a year ago. This is the highest figure for August since monthly statistics began in July 1982. The number of unemployed was 564,000, down 9,000 from the same month last year. The unemployment rate also fell 0.1 percentage points to 1.9%.
Kim Beom-seok, First Vice Minister of Strategy and Finance, chaired a joint meeting of the government’s job task force on the day and said, "Employment in construction and self-employment sectors is decreasing, and difficulties persist among vulnerable groups such as youth. We will closely monitor employment conditions by industry and group and strengthen efforts to create quality jobs and provide tailored support for vulnerable groups."
Vice Minister Kim added, "Key employment indicators continue to show favorable trends, with August employment and economic activity participation rates reaching record highs and the unemployment rate hitting a record low. We will ensure that these positive employment indicators translate into improved employment conditions felt by the public."
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