February Sees Shift to Increase in Business Workers... Construction and Wholesale/Retail Sectors Continue Decline

Number of Workers in February Reaches 19.957 Million
January Wages Surge 15.8% Due to Lunar New Year Effects

The number of workers employed by domestic businesses turned to an increasing trend last month. However, concerns grew as the construction industry continued its decline for the eighth consecutive month, and the wholesale and retail trade sector for the tenth consecutive month amid a sluggish economy. Due to the Lunar New Year holiday in January, the total wage per worker for that month rose to 4.97 million won.

On the 26th of last month, citizens visiting Gwanghwamun Square in Jongno-gu were carrying their outerwear in their hands as they moved around.

According to the 'February 2025 Business Survey Results' announced by the Ministry of Employment and Labor on the 27th, the number of workers in businesses with one or more employees last month was 19.957 million, an increase of 22,000 (0.1%) compared to the same month last year. Although the number of business workers decreased in January for the first time in 46 months since March 2021, last month avoided a negative trend.

By industry, the number of workers increased in health and social welfare services (97,000, 4.1%), professional, scientific and technical services (20,000, 1.5%), and real estate (17,000, 3.9%). In contrast, construction (-82,000, -5.6%), wholesale and retail trade (-35,000, -1.5%), and accommodation and food services (-11,000, -0.9%) decreased. Construction has shown a negative trend for eight consecutive months, and wholesale and retail trade for ten consecutive months.

Kim Jae-hoon, head of the Labor Market Survey Division at the Ministry of Employment and Labor, explained, "The construction industry has been in decline since July last year," adding, "The longest period of decline in construction workers was 13 months from March 2020 to March 2021 during the COVID-19 pandemic."

Manufacturing, which has the highest proportion of workers across all industries (about 19%), also decreased by 6,000 (-0.2%), continuing its decline for the second consecutive month. Within manufacturing, other transportation equipment manufacturing (7,000), chemical substances and chemical products manufacturing (3,000), and food manufacturing (3,000) increased, but textile product manufacturing (-5,000), non-metallic mineral product manufacturing (-4,000), and apparel, clothing accessories, and fur product manufacturing (-3,000) decreased.

Last month, the number of new hires was 876,000, down 15,000 (-1.7%) from the same month last year. The number of separations also decreased by 63,000 (-7.1%) to 819,000. The hiring rate (4.7%) and separation rate (4.4%) fell by 0.1 percentage points and 0.3 percentage points, respectively.

In January, the total wage per worker at businesses with one or more regular employees was 4.967 million won, a sharp increase of 15.8% (678,000 won). Last year, the Lunar New Year holiday was in February, but this year it was in January, leading to an increase in special payments such as Lunar New Year bonuses. The real wage per worker, reflecting price levels, also rose by 13.3% (502,000 won) to 4.292 million won.