South Korea adds 108,000 jobs in July as youth unemployment rises to 6.8%

South Korea’s labor market expanded in July, but the headline gain masked widening weakness among younger workers and several major industries. Data released by Statistics Korea on Aug. 12 showed total employment rose by 108,000 from a year earlier to 29.13 million, marking a second straight month of year-over-year job growth after a 63,000 increase in June. In May, employment had posted its first decline in 17 months, falling by 40,000. The unemployment rate increased 0.2 percentage points from a year earlier to 2.6%, while the number of unemployed rose by 50,000 to 776,000. Overall employment slipped 0.1 percentage points to 63.3%, extending its decline to a fourth month, although the employment rate for people aged 15 to 64 edged up 0.1 percentage points to 70.3%. Sector data showed persistent weakness in manufacturing, construction, and agriculture, forestry and fisheries, while hiring gains were concentrated in health and social welfare services, public administration, and arts, sports and leisure services. Youth employment remained under notable pressure: employment among people aged 15 to 29 fell by 191,000, the 45th straight month of decline, and the youth jobless rate jumped 1.3 percentage points to 6.8%, the biggest year-over-year increase in more than five years.