The Dark Side of Job Gains Over 200,000... Youth Unemployment Rate Hits Highest Since COVID-19 (Comprehensive)

Largest Increase in Employment in Five Months
Service Sector Sees Gains Driven by Lunar New Year Holiday
Government Works to Minimize Middle East Impact on Job Market

Last month, the number of employed people saw the largest increase in five months. This growth was mainly driven by the service sector, as the Lunar New Year holiday boosted employment in related industries. However, the employment chill among the youth remained severe. The unemployment rate for those aged 15 to 29 reached its highest level in five years. The government, concerned that the youth employment crisis could worsen due to the ongoing Middle East war, announced plans to swiftly implement a supplementary budget and redouble efforts to improve employment conditions.

On June 5th, the employment fair held in Gangnam District, COEX, Seoul, was bustling with job seekers. 2025.06.05 Photo by Dongjoo Yoon

According to the "February 2026 Employment Trends" released by the Ministry of Data and Statistics (formerly Statistics Korea) on March 18, the number of employed people last month stood at 28,413,000, an increase of 234,000 compared to a year earlier. After hovering in the 200,000 range in November last year, the number of new jobs shrank to the 100,000 range in December and January, but rebounded to over 200,000 in three months. This marks the largest increase since September last year, or in five months. As a result, the number of employed people has risen for 14 consecutive months.

However, the cold winds facing the young workforce have not subsided. Among all age groups, only those in their twenties saw a decrease in employment, with 163,000 fewer jobs. In contrast, employment increased by 287,000 for those aged 60 and over, by 86,000 for those in their thirties, and by 6,000 for those in their fifties.

By industry, job growth was concentrated in the service sector. Health and social welfare services saw the largest increase, with 288,000 more jobs. The transportation and warehousing sector added 81,000 jobs, while the arts, sports, and leisure-related service sector increased by 70,000. An official from the Ministry of Economy and Finance explained, "Demand for key holiday goods expanded ahead of the Lunar New Year holiday, and as direct job creation projects resumed, employment in the service sector increased."

In contrast, sectors that had previously seen steady job growth, such as professional, scientific, and technical services (-105,000) and information and communications (-42,000), experienced declines due to base effects. The downturns in key industries like manufacturing and construction continued as well. Manufacturing (-16,000) has seen a decrease in employment for 20 consecutive months since July 2024, while construction (-40,000) has recorded a decline for 22 consecutive months. A Ministry of Economy and Finance official stated, "In manufacturing, improved business sentiment driven by strong export performance has reduced the rate of decline."

Last month, the number of unemployed people reached 993,000, the highest since February 2021 (1,353,000) in five years. The unemployment rate was 3.4%, the highest for February in four years since 2022 (3.4%). In particular, the youth (aged 15-29) unemployment rate stood at 7.7%, its highest in five years since February 2021 (10.1%). The unemployment rate for those in their thirties also reached a five-year high at 3.6%, but the employment rate for this group is also rising, so the situation is different. Bin Hyunjun, Director of Social Statistics at the Ministry of Data and Statistics, explained, "The employment situation for people in their thirties is relatively favorable compared to other age groups," adding, "The higher unemployment rate appears to be a transitional phenomenon caused by people who were previously economically inactive entering the labor market on their own initiative."

The government is strengthening efforts to improve employment in vulnerable sectors, such as among the youth, in anticipation that the U.S.-Iran war will become a downward factor for the economy beginning in March. An official from the Ministry of Economy and Finance stated, "We plan to implement a supplementary budget as quickly as possible to minimize the impact of the Middle East situation on people's livelihoods and the overall economy and industry, and to provide support for affected companies." The official continued, "We will closely monitor employment conditions by industry and social group, and will continue efforts to improve employment in vulnerable sectors, such as promptly establishing youth employment measures in collaboration with related ministries."

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