Employment Increased by 411,000 in January but Slows for 8th Consecutive Month (Update)

Statistics Korea, January 2023 Employment Trends
Smallest Increase in 22 Months
Impact of Base Effect and Economic Slowdown

[Asia Economy Sejong=Reporters Jusangdon, Songsungseop] The increase in the number of employed persons in January this year was limited to 411,000, marking the eighth consecutive month of a decline in the growth rate. The increase was the lowest in 22 months, attributed to a combination of base effects and economic slowdown.

On the 15th, Statistics Korea released the 'January 2023 Employment Trends' report containing these details.

The number of employed persons in January was 27,363,000, an increase of 411,000 compared to the same month last year. This increase is the smallest since March 2021 (314,000).

The growth in employment has been decreasing for eight consecutive months. After peaking at 935,000 in May last year, it began to decline to 841,000 in June.

The decrease in growth is largely due to the base effect. Employment increased by 1,135,000 in January last year, the largest increase in 22 years since March 2000.

Looking at employment changes by age group, employment increased by 400,000 for those aged 60 and over, 107,000 for those in their 50s, and 17,000 for those in their 30s. However, it decreased by 63,000 for those in their 40s and 43,000 for those in their 20s.

By industry, employment increased in health and social welfare services (220,000, 9.3%), accommodation and food services (214,000, 10.2%), and information and communication (72,000, 7.7%). In the financial and insurance sector, employment rose by 16,000, marking a return to growth after 13 months. Seounju, Director of the Social Statistics Bureau at Statistics Korea, explained, "The increase is largely due to the base effect. Since financial and insurance industries are sectors that continuously grow in industrial trends, this influence is reflected in employment."

On the other hand, employment decreased in wholesale and retail trade (-61,000, -1.8%), transportation and warehousing (-51,000, -3.0%), and agriculture, forestry, and fisheries (-47,000, -3.8%). In manufacturing, employment fell by 35,000 from 4,467,000 in January last year to 4,432,000 this January. This is the first decline in manufacturing employment in 15 months since October 2021 (-13,000). Statistics Korea noted that the decrease is largely due to reductions in electronics, computers, video, and food sectors, and predicted that this trend will continue unless exports improve.

The average weekly working hours of employed persons in January this year was 38.3 hours, a decrease of 0.8 hours compared to the same month last year. The number of employed persons working 36 hours or more per week decreased by 128,000 (-0.6%) to 20,558,000, while those working less than 36 hours increased by 470,000 (8.2%) to 6,168,000.

The employment rate for ages 15-64 (OECD comparison standard) was 67.8%, up 0.8 percentage points from the same month last year. The increase in the youth employment rate (ages 15-29) was smaller, rising only 0.4 percentage points to 46.1%.

The number of unemployed persons in January was 1,024,000, a decrease of 119,000 (-10.4%) compared to the same month last year. The unemployment rate was 3.6%, down 0.5 percentage points from the previous year.

The economically inactive population, those neither employed nor unemployed, was 16,965,000, a decrease of 139,000 (-0.8%) compared to the same month last year.

By activity status compared to the same month last year, increases were seen in household work (86,000, 1.4%) and resting (84,000, 3.3%). However, decreases occurred in childcare (-181,000, -16.3%) and schooling/training (-75,000, -2.2%). The number of job seekers preparing for employment was 692,000, down 87,000 (-11.2%), and discouraged job seekers decreased by 140,000 to 388,000.

Director Seo said, "In January, employment increased mainly in health and social welfare services, but the decline in manufacturing slowed the growth in employment. February has positive factors such as the adjustment of indoor mask-wearing mandates and the recovery of daily life, but considering the base effect and increasing domestic and international economic uncertainties, these factors must be comprehensively assessed."

This content was produced with the assistance of AI translation services.