Domestic Demand Slump Continues to Slow Employment... Construction, Manufacturing, and Retail Hit Hard (Comprehensive)

November Employment Increased by 123,000
Construction Down by 96,000, Manufacturing Down by 95,000
87,000 in Their 20s Took a Break... Decreased by 65,000

Last month, the number of employed people increased by only 123,000 compared to the same month last year. The trend of declining employment continued in industries closely related to domestic demand, such as construction and manufacturing. In particular, manufacturing employment decreased by 95,000, marking the largest decline in 1 year and 7 months. The population of young people who took a break from work surged by 20.2%. In response to the slowdown in employment, the government plans to inject a direct job budget next year to quickly hire more than 1.1 million people in the first quarter.

According to the 'Employment Trends for November 2024' released by Statistics Korea on the 11th, the number of employed people aged 15 and over last month was 28,821,000, an increase of 123,000 compared to the same month last year. The increase in the number of employed people had maintained the 100,000 range for three consecutive months from July (172,000), August (123,000), and September (144,000), then seemed to fall below that in October (83,000), before barely recovering to the 100,000 range last month.

By industry, employment increased in health and social welfare services (113,000), education services (106,000), and information and communication (71,000). On the other hand, decreases were seen in construction (-96,000), manufacturing (-95,000), and wholesale and retail trade (-89,000). The negative trend continues in industries closely tied to domestic demand.

In particular, manufacturing showed the largest decline since April last year (-97,000), marking the fifth consecutive month of decline. Seounju, Director of the Social Statistics Bureau at Statistics Korea, explained, "There are differences by industry within manufacturing. While industries such as food products and automobiles continue to grow, the growth rate has slowed this time. Employment in electronics components and clothing, which have been continuously decreasing, is seeing an expanding decline."

Construction also showed a decrease of 100,000 in September, the largest since the 10th industrial classification in 2013, followed by decreases of 93,000 in October and around 90,000 last month. The decline in construction employment has lasted for seven months. Director Seo stated, "(Looking at construction subcategories) the decrease in specialized construction work was notable, and general construction continues to decline without change," adding, "All are decreasing."

By age group, employment increased among those aged 60 and over (298,000), those in their 30s (89,000), and those in their 50s (7,000). Especially, those aged 60 and over recorded the largest increase since January (350,000), continuing a 46-month consecutive rise. This is due to an aging population structure and demand for elderly workers in the labor market, such as in caregiving. Conversely, employment decreased among those in their 20s (-170,000) and 40s (-91,000).

The employment rate for ages 15-64, based on the OECD standard, was 69.9%, up 0.3 percentage points from the same month last year. This was the highest for November since related statistics began in 1989. However, the youth employment rate (ages 15-29) fell by 0.8 percentage points to 45.5%. The overall unemployment rate dropped by 0.1 percentage points to 2.2%, while the youth unemployment rate rose by 0.2 percentage points to 5.5%. Last month, the number of unemployed was 656,000, down by 21,000.

Last month, the economically inactive population was 16,151,000, an increase of 50,000 compared to the same month last year. This was due to increases in those who took a break (179,000) and those engaged in household duties (90,000). In particular, the population who took a break (2,420,000) showed notable increases among those in their 20s (65,000) and those aged 60 and over (47,000). For those in their 20s, the rate of increase in those taking a break reached 20.2%.

Since employment in construction and manufacturing is declining, and vulnerable groups such as youth and small business owners continue to face difficulties amid significant domestic and international uncertainties, the government has taken measures. Kim Beom-seok, First Vice Minister of Strategy and Finance, said at the job task force (TF) meeting on the day, "We will increase the number of hires in direct job projects from 1,178,000 this year to 1,239,000 next year and prepare for recruitment starting in January," adding, "We plan to quickly hire more than 90% (about 1.1 million) in the first quarter."