October Employment Up 140,000, but Youth Employment Faces a "Cold Snap" for Fourth Straight Year (Comprehensive)

Ministry of Data and Statistics releases October Employment Trends

The number of employed people rose by 139,000 last month from a year earlier, extending the increase in the 100,000 range for a fourth consecutive month. However, despite an overall improvement in employment indicators, the employment slump among young people continued for a fourth year, while employment in the accommodation and food service industry fell by the largest amount since the COVID-19 pandemic.

According to the October Employment Trends report released on November 11 by the Ministry of Data and Statistics, the number of employed people aged 15 and older stood at 29,179,000 last month, up 139,000 from the same period a year earlier. Employment fell by 40,000 in May this year, then turned upward in June, rising by 63,000, before reaching an increase in the 100,000 range in July, with a gain of 108,000. The increase then narrowed somewhat from 184,000 in August to 113,000 in September, before edging up last month and recording gains in the 100,000 range for four consecutive months.

Employment among young people falls by 196,000... Employment rate declines for 30 consecutive months to 42.9%

However, the employment difficulties facing young people remain severe. The number of employed people aged 15 to 29 fell by 196,000 to 3,325,000, marking a decline for the 48th consecutive month. The employment rate for this age group also fell by 1.7 percentage points to 42.9%, continuing its decline for the 30th consecutive month. Even using the age range for young people (15 to 34) under the Special Act on the Promotion of Youth Employment, which took effect last month, the employment rate was 55.4%, down 0.6 percentage points from the same month a year earlier. Bin Hyunjun, director general of the Social Statistics Bureau at the Ministry of Data and Statistics, explained, "Along with industry-related factors, the preference for experienced workers in new hiring and the spread of a culture of rolling recruitment also appear to be having a sustained impact on the decline in youth employment and the drop in the employment rate."

By age group, employment fell by 203,000 among people in their 20s and by 32,000 among those in their 40s. In contrast, the number of employed people rose among those aged 60 and older (196,000), those in their 30s (128,000), and those in their 50s (42,000).

Accommodation and food service employment plunges by 137,000, its biggest decline since COVID-19... Manufacturing also returns to a decline

By industry, the accommodation and food service sector was notably weak. Employment in the sector fell by 137,000 (5.8%) from a year earlier, declining for the third consecutive month. This was the largest drop since February 2021, during the COVID-19 pandemic, when employment fell by 233,000. The Ministry of Data and Statistics attributed the decline in large part to a base effect, as employment in the sector had risen substantially last year in the second half amid the effects of consumer coupon issuance.

After rebounding in September for the first time in 27 months, manufacturing employment fell by 7,000 and returned to a downward trend. Bin said, "The manufacturing production index showed a generally favorable trend from June through September, except in August," adding, "We need to wait a little longer to determine whether last month's increase was a temporary rebound."

Employment in construction also fell by 42,000, continuing its decline for the 30th consecutive month, while employment in agriculture, forestry and fisheries dropped by 101,000 (6.9%).

Meanwhile, the total number of unemployed people stood at 602,000, down 56,000 from a year earlier, while the unemployment rate fell by 0.2 percentage points to 2.0%. The economically inactive population increased by 179,000, while the number of people who said they were "taking a break" fell by 69,000.

Government to launch 'National Jobs Project' to improve employment for vulnerable groups

The government plans to develop a joint plan with relevant ministries for the National Jobs Project, aiming to support the recent rise in employment and extend the benefits of economic growth to people's livelihoods. Along with employment initiatives to improve conditions for vulnerable groups, including young people, older adults, and middle-aged people who have retired early, the plan will explore ways to expand job training opportunities suited to the era of AX (artificial intelligence transformation). The government also intends to ensure that direct employment programs to stabilize income and jobs for vulnerable groups during the winter are implemented without disruption by year-end, while thoroughly preparing next year's programs.

Kwon Daeyoung, First Vice Minister of Finance and Economy, said, "Jobs are the most important channel and lifeline for directing the benefits of export-led economic growth toward domestic demand and people's livelihoods." He added, "We will make improving employment conditions for vulnerable groups a top priority and bring together the capabilities of relevant ministries to do our utmost in developing the National Jobs Project plan and throughout every stage of program implementation."

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