Employment Increased by 144,000 but... Construction Industry Faces 'Worst' Employment Freeze (Comprehensive)

Statistics Korea Announces 'September Employment Trends'
Number of Employed Increases by 144,000
Construction Industry Employment Declines for 5 Consecutive Months
Employment Rate for Ages 15-64 at 69.9%

Last month, the number of employed people increased by 144,000 compared to the same month last year, marking a three-month consecutive increase in the 100,000 range. While employment decreased in construction, wholesale and retail trade, and manufacturing industries, construction saw a decline of 100,000 jobs due to economic downturn, recording the largest decrease ever. Among the youth, employment numbers fell, and the number of people resting increased by 69,000, the largest increase in 44 months.

According to the 'September Employment Trends' released by Statistics Korea on the 16th, the number of employed people aged 15 and over last month was 28,842,000, an increase of 144,000 (0.5%) compared to the same month last year. In May (80,000) and June (96,000), the increase was below 100,000, but from July (172,000), the increase has been in the 100,000 range for three consecutive months. The trend of increasing employment has continued for 43 months since March 2021.

Last month, employment increased in industries such as information and communication (105,000), professional, scientific and technical services (83,000), and transportation and warehousing (79,000). On the other hand, employment decreased in wholesale and retail trade (104,000), construction (100,000), and manufacturing (49,000). In particular, construction recorded the largest decrease since the 10th industrial classification in 2013. The decline has continued from May (47,000), June (66,000), July (81,000), to August (84,000), with the decrease widening.

Seo Woon-ju, Director of the Social Statistics Bureau at Statistics Korea, said, "Construction employment has decreased for five consecutive months," adding, "The decline in the overall construction sector is due to the sluggish construction market." He explained, "Wholesale and retail trade has been decreasing for seven consecutive months, showing a continuous downward trend," and "Manufacturing has been declining for three consecutive months."

By age group, employment increased among those aged 60 and over (272,000), 30s (77,000), and 50s (25,000), but decreased among those in their 20s (150,000) and 40s (62,000). Employment among youth (aged 15-29) decreased by 168,000, continuing a 23-month consecutive decline. The youth employment rate also fell by 0.7 percentage points to 46.5%. This contrasts with the employment rates for those aged 15 and over (63.3%) and 15-64 (69.9%), which rose by 0.1 and 0.3 percentage points, respectively. The employment rate for ages 15-64, based on OECD standards, is the highest since statistics began in July 1982.

Director Seo commented, "The decrease in youth employment is largely due to population decline," and added, "Delays in entering economic activities and expectations regarding job quality have also influenced this." He further noted, "From the labor market perspective, there is a preference for experienced workers."

The number of unemployed was 622,000, a decrease of 39,000 (5.9%) compared to the same month last year. The unemployment rate was 2.1%, down 0.2 percentage points from the previous year. Both the number of unemployed and the unemployment rate recorded the lowest figures since the job search criteria were changed in June 1999.

The economically inactive population was 16,125,000, an increase of 54,000 (0.3%). This was due to a continued increase in those resting (231,000), despite decreases in activities such as childcare (-122,000). Notably, among those resting, the youth population (aged 15-29) increased by 69,000, the largest increase in 44 months since January 2021 (112,000).

The government plans to focus on resolving the decline in construction employment and the ongoing difficulties faced by vulnerable groups such as youth. Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, stated at the Economic Ministers' Meeting held that day, "We plan to improve the treatment of skilled workers to attract new personnel to the construction industry and expand employment education for youth." He also announced, "Next month, we will prepare the '2nd Social Mobility Improvement Plan' to promote economic activities among vulnerable groups such as youth, women, and middle-aged people."