Despite Record-High March Employment Rate... Youth Jobs Slump for 23rd Month (Comprehensive)

Employment Rate Reaches Record High at 62.7%
Youth Unemployment Rises to 7.6%, Up 0.1 Percentage Points

The number of employed people in March increased by 206,000 compared to a year earlier, marking 15 consecutive months of growth. While the overall employment rate reached the highest level ever recorded for March, the youth employment rate declined for the 23rd straight month, highlighting ongoing generational imbalances in the employment structure.

According to the "March 2026 Employment Trends" released by the Ministry of Data and Statistics on April 15, the number of employed people last month stood at 28,795,000, up 206,000 (0.7%) from the same month last year. The monthly increase in the number of employed had dropped to just above 100,000 in January (108,000), but rebounded to 234,000 in February, maintaining a pace above 200,000 for two consecutive months.

The employment rate for those aged 15 to 64, the standard used by the Organisation for Economic Co-operation and Development (OECD), rose to 69.7%, up 0.4 percentage points from a year earlier. This is the highest March figure since the statistics began in 1989. The employment rate for those aged 15 and older also rose by 0.2 percentage points to 62.7%, hitting a record high for March since monthly statistics began in July 1982. While employment growth was driven by older adults and some age groups, there was a decline among certain core working-age groups. The number of employed people aged 60 and older increased by 242,000, those in their 30s by 112,000, and those in their 50s by 5,000. However, the number of employed in their 20s fell by 167,000, and those in their 40s decreased by 5,000.

Job seekers attending the '2026 Public Institution Job Information Fair' held at the aT Center in Seocho-gu, Seoul on the 27th are checking the recruitment board. 2026.1.27 Photo by Kang Jinhyung

Contrasting Employment Trends Amid Weakness in Youth and Key Industries

During the same period, the number of employed young people (aged 15–29) declined by 147,000. This marks 41 consecutive months of decline since November 2022. The youth employment rate also dropped by 0.9 percentage points to 43.6%, falling for the 23rd straight month. Bin Hyunjun, Director General for Social Statistics at the Ministry of Data and Statistics, stated, "There has been a decrease in youth employment in the accommodation and food service, information and communications, and manufacturing sectors," adding, "This reflects a preference for experienced workers and the increase in rolling recruitment."

Even within the service industry, there were marked differences by sector. Employment increased in healthcare and social welfare services (294,000), transportation and storage (75,000), and arts, sports, and leisure services (44,000). In contrast, there were declines in public administration, defense, and social security administration (-77,000), professional, scientific, and technical services (-61,000), and agriculture, forestry, and fishing (-58,000). Wholesale and retail trade saw a decrease of 18,000, marking a return to decline after 11 months since April last year, while accommodation and food service has decreased for five consecutive months since November last year.

The sluggish performance of key industries is weighing on the quality of employment. The manufacturing sector lost 42,000 jobs, while construction shed 16,000. Manufacturing has been in decline for 21 consecutive months, and construction for 23 months. Professional, scientific, and technical services also saw a reduction of 61,000 jobs, shifting to four straight months of decline after 55 months of continuous growth. The Ministry of Data and Statistics interpreted this as a result of decreased engineering demand due to weakness in construction and a slowdown in the business environment for professional services such as advertising and consulting.

Overall unemployment indicators improved, but conditions worsened for young people. The number of unemployed stood at 884,000, down 35,000 (-3.8%) from the same month last year. The overall unemployment rate was 3.0%, down 0.1 percentage points from a year ago, the second lowest March figure since statistics began in June 1999. However, the youth unemployment rate rose by 0.1 percentage points to 7.6%, hitting its highest March level in five years since 2021.

The number of people outside the labor force also increased in some areas, limiting the perceived recovery in employment. The economically inactive population last month stood at 16,271,000, up 69,000 (0.4%) from a year earlier. By activity, those inactive due to childcare fell by 83,000 (-12.2%), while those in school or taking courses increased by 66,000 (2.0%). The number of people who were "resting" reached 2,548,000, an increase of 31,000 from a year earlier. Among the economically inactive, the number of discouraged job seekers totaled 354,000, down 1,000 from the same month last year.

The government stated, "Given that, from this month onward, uncertainties such as the Middle East war could act as downward factors for people's livelihoods, the economy, and key industries, we will swiftly implement supplementary budgets to stabilize the livelihoods of citizens and support businesses affected by these conditions."

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