Health and Social Welfare Services Up by 263,000
Construction Down by 92,000, Manufacturing Down by 78,000
Agriculture, Forestry, and Fisheries Decline Exceeds 100,000 for Four Consecutive Months
Youth Employment Rate Drops 0.7 Percentage P
Although last month’s employment rate (70.2%) reached an all-time high and the unemployment rate (2.4%) hit a record low, there were stark differences by industry and age group. The number of people employed in the health and social welfare services sector increased due to the aging population trend. However, the decline in employment in key sectors such as manufacturing and construction has continued for over a year. The youth employment rate fell for the 15th consecutive month, remaining sluggish. The number of people in their 20s who were not engaged in economic activity exceeded 420,000, marking the highest figure for July on record.
Job seekers visiting the Gangnam-gu Job Fair held last June at COEX in Gangnam-gu, Seoul, are checking the job posting board.
According to the “July 2025 Employment Trends” released by Statistics Korea on the 13th, the number of employed persons last month was 29,029,000, an increase of 171,000 compared to the same period last year. The number of employed persons has increased for seven consecutive months since January (135,000). After exceeding 200,000 in May (245,000), the increase has remained in the 100,000 range since June (183,000), consistently surpassing the government’s early-year forecast of 120,000 new jobs.
Employment trends varied by industry. The health and social welfare services sector (263,000) and the professional, scientific, and technical services sector (91,000) continued to see increases. Last month, the number of people employed in the health and social welfare services sector reached 3.29 million, the largest since the industry classification was revised in January 2013. This is due to increased demand for health and elderly care services as a result of the aging population. Gong Misook, Director-General of Social Statistics at Statistics Korea, explained, “The health and social welfare services sector continues to grow in size, and its proportion within our industry is also increasing.”
On the other hand, agriculture, forestry, and fisheries (-127,000), construction (-92,000), and manufacturing (-78,000) continued to decline. The agriculture, forestry, and fisheries sector has decreased for six consecutive months due to the combined effects of abnormal weather and structural factors such as population decline. The decrease has remained above 100,000 for four consecutive months. Although the decline in construction and manufacturing has slowed, the number of employed persons in these sectors has decreased for 15 and 13 consecutive months, respectively, due to sluggish business conditions. Employment in accommodation and food services (-71,000) saw its largest drop since November 2021 (-86,000), mainly due to the food and beverage services sector, marking three consecutive months of decline.
By age group, employment continued to increase among those aged 60 and over (342,000) and those in their 30s (93,000). In contrast, employment declined among those in their 20s (-135,000), 40s (-56,000), and 50s (-49,000). With employment among those in their 20s and 40s declining for an extended period, the number of employed persons in their 50s has also decreased for seven consecutive months since January (-14,000). Director Gong noted, “Employment among those in their 50s has decreased in agriculture, forestry, and fisheries, wholesale and retail, and construction. The decline in employment in agriculture, forestry, and fisheries this year has affected the number of employed persons in their 50s as well.”
The employment and unemployment rates remain favorable. As the employment rate among older adults rises, the employment rate for those aged 15-64, based on the OECD standard, increased by 0.4 percentage points to 70.2%, the highest ever recorded for July. The unemployment rate fell by 0.1 percentage points to 2.4%, the lowest ever for July. The labor force participation rate rose by 0.1 percentage points to 65.0%. However, the employment rate for young people (aged 15-29) fell by 0.7 percentage points to 45.8%, marking the 15th consecutive month of decline and continuing a sluggish trend. The youth unemployment rate was 5.5%, unchanged from the previous year.
The economically inactive population, excluding employed and unemployed persons, increased by 8,000 to 16,004,000. This was due to increases in the number of people not engaged in economic activity (69,000) and those doing housework (60,000). The number of young people not engaged in economic activity (436,000) decreased by 7,000, marking three consecutive months of decline, but due to the base effect, it remained above 400,000. The number of people in their 20s not engaged in economic activity (421,000) was the highest ever recorded for July.
The government believes that the continued decline in youth employment rates is due to sluggish employment in sectors with high employment shares, such as accommodation and food services and manufacturing. Going forward, the government plans to improve youth employment conditions by strengthening the capacity for private sector job creation and supporting job-seeking activities. For the middle-aged and older population, reemployment support will be enhanced to help them utilize their experience and expertise. Jang Juseong, Director of Human Resources Policy at the Ministry of Economy and Finance, stated, “Although the rise in the overall employment rate is being driven by older adults, there is a tendency for them to move to low-wage jobs after early retirement from primary employment. The government will come up with supplementary measures.”
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