June Employment Rises by 63,000 as Middle East Risks Ease... Youth Job Market Worsens (Comprehensive)

June Employment Trends Released by Ministry of Data and Statistics
Employment Turns Up After a Month but Manufacturing Slump Persists
Renewed Middle East Tensions... Government Vows "All-Out Response Focused on Youth and Manufacturing"

The number of employed persons in June increased by 63,000 compared to a year earlier, rebounding after a month-long decline. As risks from the Middle East conflict subsided, there was some relief in the job market. However, youth employment rates continued to fall for the 26th consecutive month, highlighting the ongoing severe employment crisis among young people. Despite the outward economic growth fueled by the semiconductor boom, the employment downturn closely tied to people's livelihoods persists, leading to growing concerns about "jobless growth."

The KB Good Job Employment Fair was held on the 27th at COEX in Gangnam-gu, Seoul. Many job seekers visiting the fair are lining up for interviews. 2026.04.27 Photo by Dongju Yoon

Employment Recovers in a Month as Middle East Uncertainty Eases

According to the "June Employment Trends" report released by the Ministry of Data and Statistics on July 15, the number of employed persons last month stood at 29,154,000, an increase of 63,000 from a year earlier. This marks a turnaround after just one month. Employment gained by over 200,000 for two consecutive months in February (234,000) and March (206,000) of this year, then shrank to 74,000 in April as the Middle East conflict escalated, and fell by 40,000 in May. This May marked the first time in a year and five months that the number of employed declined compared to a year earlier. Bin Hyunjoon, Director of the Social Statistics Bureau at the Ministry of Data and Statistics, explained, "While international uncertainties caused by the Middle East conflict had a major impact in May, this pressure eased somewhat in June, allowing for at least some positive growth."

Manufacturing, the Core of Employment, Remains Sluggish... Youth Employment Falls for 26 Months

Despite the increase in employment, the employment rate for those aged 15 and older fell for the third consecutive month, reaching 63.4%. This was 0.2 percentage points lower than the same period last year. While the population aged 15 and over rose by 254,000, the increase in employment was relatively small. Youth employment was particularly dire. The number of employed young people (aged 15–29) decreased by 197,000 from a year earlier. The employment rate for young people stood at 43.9%, having fallen for 26 consecutive months since May 2024. Compared to June 2024 and June 2025, this reflected decreases of 2.7 percentage points and 1.7 percentage points, respectively. The youth unemployment rate also rose to 7.0%, up 0.9 percentage points from a year ago. This is the largest rise since March last year (1.0 percentage points).

The prolonged slump in the manufacturing sector, a pillar of the job market, has been especially painful. The number of people employed in manufacturing fell by 97,000, marking a decrease for 24 consecutive months. Although semiconductor exports are driving outward economic growth for Korea, this has not translated into significant job creation. Director Bin explained, "The semiconductor industry generates less employment than other manufacturing industries, so despite strong export figures, the positive impact on the actual job market is limited."

Additionally, employment in the construction sector fell by 67,000, marking the 26th straight month of decline—the sharpest drop since November last year (down 131,000). Those employed in wholesale and retail, both sectors tied to domestic demand, also decreased by 44,000. In contrast, employment increased in health and social welfare services (+214,000), arts, sports, and leisure-related services (+55,000), and transport and warehousing (+48,000).

The total number of unemployed reached 834,000, an increase of 10,000 over the same period. The economically inactive population rose by 181,000 to 16,009,000. Among them, the number of discouraged job seekers climbed by 16,000 to 356,000, which is the largest size since February this year (367,000).

Yonhap News Agency

Concerns Over Renewed Tensions in the Middle East... Government to "Focus All Efforts on Youth and Manufacturing"

The government recently revised its employment growth forecast for this year, lowering it from 160,000 to 150,000, as outlined in the 2026 second-half economic growth strategy. Officials cited heightened tension in the Middle East as a continuing downward risk for the job market and said all-out efforts will focus on vulnerable and struggling sectors such as youth and manufacturing. The government had previously announced plans, under the 2026 second-half economic growth strategy, to train over 200,000 professionals in advanced fields like artificial intelligence and semiconductors by 2030 and to create more than 200,000 jobs in both the public and private sectors. Measures to restore youth employment are also scheduled to be announced during the third quarter this year.

An official from the Ministry of Economy and Finance stated, "For sectors with sluggish employment, like manufacturing and construction, we plan to analyze the underlying causes and develop responses through task forces led by vice-minister-level officials." The official added, "We will also ramp up efforts to create jobs through major projects such as the Three Mega Projects and the Five-Pole, Three-Special Growth Engines."

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