<기사>Warm Breeze in the Job Market, Record Low Unemployment Rate... Youth and Manufacturing Sector Slump (Comprehensive)

June Employment Trends Announced by Statistics Korea on the 12th
Employment Rate at 63.5%... Highest Since July 1982
Unemployment Rate Also Lowest in 24 Years at 2.7%
Despite Soaring Employment Indicators, Youth and Manufacturing Remain Weak

Women participating in the '2023 Seoul Women Up Fair' held at Dongdaemun Design Plaza in Seoul on the 3rd are receiving employment consulting. Photo by Jinhyung Kang aymsdream@

A favorable breeze is blowing through the employment market. The employment rate reached its highest level since July 1982, and the unemployment rate hit its lowest since June 1999. This is attributed to increased demand for caregiving, the effects of daily life recovery, and the rapid rise in economic activity participation among women and the elderly.

According to the 'June Employment Trends' released by Statistics Korea on the 12th, the employment rate for those aged 15 and over was 63.5%, up 0.6 percentage points from the same period last year. This is the highest employment rate in 41 years. The employment rate for ages 15-64, the OECD comparison standard, increased by 0.8 percentage points to 69.9%.

Employment Growth Led by Women and the Elderly

The number of employed persons reached 28,812,000 last month. Despite a base effect of an 841,000 increase in June last year, the number rose by 333,000. The upward trend has continued for 28 consecutive months since March 2021. However, the increase has slowed for three consecutive months following March (469,000), April (354,000), and May (351,000).

The number of unemployed persons was 807,000, down by 81,000. This is the lowest since 770,000 in 2008 for the same month. The unemployment rate also fell by 0.3 percentage points to 2.7%, marking the lowest in 24 years.

The boom in the employment market was driven by the elderly and women. By age group, employment among those aged 60 and over increased by 343,000, far surpassing the 70,000 increase in the 30s and 71,000 in the 50s. By gender, the increase in male employment sharply shrank from 441,000 in the same month last year to 10,000, while women maintained an increase from 400,000 to 332,000. The economic activity participation rates of the elderly and women also rose by 0.8 percentage points and 1.1 percentage points, respectively.

Additionally, the rise in caregiving demand and the recovery of daily life following the end of COVID-19 acted as positive factors. Employment in health and social welfare services reached 2,897,000, increasing by 126,000. This accounts for one-third of the total increase in employed persons. Accommodation and food services (116,000) and professional and scientific technical services (98,000) also saw significant increases.

Whether the employment market boom will continue into the second half of the year remains uncertain. Export conditions are uncertain, and the impact of manufacturing on the employment market is complex, making it difficult to predict the situation. The Ministry of Economy and Finance stated, “Due to the slowdown in employment in manufacturing and construction, the increase in the number of employed persons is expected to gradually shrink,” adding, “We plan to enhance economic vitality and strengthen customized job support through measures to resolve vacant jobs to solidify the favorable employment trend.”

Frozen Youth and Manufacturing Despite a Heated Employment Market

Despite the favorable employment situation, the manufacturing sector remains sluggish. Manufacturing employment decreased by 10,000 due to reduced exports and production sluggishness, continuing a six-month decline. Construction (-62,000) and transportation and warehousing (-39,000) also showed poor performance.

Youth employment indicators (ages 15-29) were also weak compared to other age groups. Youth employment stood at 3,947,000, down by 117,000, marking an eight-month consecutive decline. The decrease widened from 99,000 in May. Employment among those in their 40s also fell by 34,000, continuing a 12-month consecutive decline.

[Image source=Yonhap News]

Seo Un-ju, Director of the Social Statistics Bureau at Statistics Korea, said, “The decrease in youth employment should be considered alongside population decline and base effects,” adding, “The youth employment rate is not low.” She explained that the youth population is shrinking due to the low birthrate trend, and the relatively large decrease is because the increase in youth employment last June was as high as 104,000.

By employment status, permanent employees among wage workers increased by 546,000, showing a positive trend. Temporary workers (-133,000) and daily workers (-115,000) decreased. Among non-wage workers, self-employed without employees increased by 81,000, and self-employed with employees rose by 15,000. Unpaid family workers decreased by 60,000.

The economically inactive population, neither employed nor unemployed, was 15,765,000, shrinking by 118,000. The number of people 'resting' increased by 175,000 but decreased in areas such as elderly (-92,000) and childcare (-150,000). The number of discouraged job seekers was 343,000, down by 91,000 compared to a year ago.

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