Prolonged Employment Slump in Construction and Manufacturing... Record-High Number of "Resting" Workers in Their 30s (Comprehensive)

Number of Employed Increased by 166,000 in August
Eighth Consecutive Month of Growth, but Pace Slows
Construction and Manufacturing Down for 16 and 14 Months
Youth Employment Rate Falls for 16 Straight Months

Last month, the number of employed people in the construction and manufacturing industries decreased by approximately 130,000 and 60,000, respectively, as the sluggish employment situation continued for over a year. The employment rate among young people remained in the 45% range, marking a decline for 16 consecutive months. The number of people in their 30s who reported being "resting" reached its highest level ever for August. The government plans to focus on creating jobs favored by young people and strengthening employment services for vulnerable youth.

Job seekers visiting the Gangnam-gu Job Fair held at COEX in Seoul last June are checking the job posting board.

According to the "August 2025 Employment Trends" released by Statistics Korea on September 10, the number of employed people aged 15 and older last month was 28,967,000, an increase of 166,000 compared to the same month last year. The number of employed people has continued to grow for eight consecutive months since January (135,000). However, after May (245,000), the increase slowed, remaining in the 100,000 range for three consecutive months in June (183,000), July (171,000), and August.

The divergence in employment trends by industry continued. The number of employed people increased in health and social welfare services (304,000), education services (48,000), and real estate (40,000). This is the first time since statistics began that the number of people employed in health and social welfare services has surpassed 300,000. The accommodation and food service industry, which saw declines from May (-67,000) to July (-71,000), recorded a stable trend last month, attributed to the distribution of consumption coupons for livelihood recovery.

The number of employed people decreased in agriculture, forestry and fisheries (-138,000), construction (-132,000), and manufacturing (-61,000). The agriculture, forestry and fisheries sector has declined for seven consecutive months due to a decrease in the farming and fishing population and abnormal weather conditions. The decline has remained in the 100,000 range for five consecutive months. The construction industry recorded a decrease for 16 consecutive months, and manufacturing for 14 consecutive months. In particular, the construction sector, after seeing the decrease shrink to the 90,000 range in June and July following May's -106,000, saw the decline widen again to over 100,000 last month.

By age group, the number of employed people increased among those aged 60 and older (401,000) and those in their 30s (96,000), reflecting demographic changes. In contrast, the number of employed people in their 20s (-195,000), 40s (-73,000), and 50s (-38,000) continued to decrease. Notably, the number of employed youth (aged 15-29) dropped by 219,000, marking the first time in five months since March (-206,000) that the decline exceeded 200,000. This was influenced by a slowdown in growth in professional, scientific, technical, and information and communications sectors.

The difficulties faced by young people were also evident in employment and unemployment rates. The employment rate for those aged 15 to 64, based on the Organization for Economic Cooperation and Development (OECD) standard, was 69.9%, up 0.1 percentage points. This is the highest figure for August since relevant statistics began in 1989. However, the youth employment rate dropped by 1.6 percentage points to 45.1%, marking a decline for 16 consecutive months. The unemployment rate for those aged 15 and older (2.0%) rose by 0.1 percentage points, while the youth unemployment rate (4.9%) increased by 0.8 percentage points, a larger rise.

The economically inactive population, excluding the employed and unemployed, increased by 9,000 to 16.22 million. Among them, those who reported "resting" without actively seeking work (2.641 million) increased by 73,000. In particular, the number of people in their 30s who reported "resting" rose by 19,000 to 328,000, the highest ever for August. A Ministry of Economy and Finance official stated, "The increase in people in their 20s reporting 'resting' is shifting to those in their 30s, reflecting the characteristics of a generation with active job changes and career transitions." The number of young people (446,000) reporting 'resting' decreased by 14,000, marking a decline for four consecutive months.

Lee Hyungil, First Vice Minister of Economy and Finance, said at the inter-ministerial Job Task Force (TF) meeting held that day, "The virtuous cycle of growth and job creation, which creates jobs preferred by young people through the AI-driven transformation and ultra-innovative economy, is the key to solving youth employment issues." He emphasized, "We must mobilize public and private sector capabilities to swiftly implement leading projects for those in their 30s and strengthen employment services for vulnerable youth."