South Korea added 108,000 jobs in July from a year earlier, bringing total employment to 29.13 million, according to data released by Statistics Korea on Aug. 12. The increase followed a gain of 63,000 in June, marking a second straight month of year-over-year growth after employment fell by 40,000 in May, the first decline in 17 months.
The jobless rate rose 0.2 percentage points from a year earlier to 2.6%. The number of unemployed increased by 50,000 to 776,000. Overall employment slipped 0.1 percentage points to 63.3%, extending a four-month decline, while the employment rate for those aged 15 to 64 edged up 0.1 percentage points to 70.3%.
Industry split remained pronounced
The data pointed to continued divergence across sectors. Manufacturing employment fell by 68,000 from a year earlier, the 25th straight month of contraction, though the drop narrowed from June’s decline of 97,000. Construction shed 57,000 jobs, its 27th consecutive monthly decline, while agriculture, forestry and fisheries lost 80,000 jobs.
Job growth was concentrated in a handful of service sectors. Employment in health and social welfare services increased by 173,000. Public administration added 46,000 jobs, supported by hiring tied to civil service exams as well as tax-related and internship positions. Arts, sports and leisure services added 48,000 jobs.
Youth labor conditions worsened
Youth employment remained a weak spot. The number of employed people aged 15 to 29 dropped by 191,000 from a year earlier, extending the decline to 45 consecutive months. The employment rate for that age group fell 1.6 percentage points to 44.2%, marking a 27th straight month of decline.
The youth unemployment rate climbed 1.3 percentage points to 6.8%, the largest year-over-year increase in more than five years. By contrast, the employment rate for people aged 65 and older rose 0.8 percentage points to 41.5%.
Economically inactive population increased
South Korea’s economically inactive population rose by 99,000 from a year earlier to 16.10 million. Within that total, the number of people classified as taking a complete rest fell by 62,000 to 2.51 million.
Finance ministry cited external pressures
South Korea’s Ministry of Economy and Finance said tensions in the Middle East, heat waves, and unfavorable weather conditions were weighing on the labor market. The ministry said it would work across departments to stabilize the pace of employment growth.