S. Korea Jobs Growth Falls to 16-Month Low

(MENAFN) South Korea's labor market expansion decelerated to its weakest pace in 16 months in April, as persistent geopolitical instability in the Middle East continued to weigh on economic momentum, data from the Ministry of Data and Statistics revealed Wednesday.

The number of employed individuals aged 15 and older rose by 74,000 — or 0.3% — year-on-year to 28,961,000 last month, the slowest rate of growth since December 2024. Despite the slowdown, the figure extended the country's unbroken employment expansion to 16 consecutive months dating back to January 2025.

Analysts attributed the deceleration to spillover effects from Middle East tensions, which have driven oil prices higher and dampened consumer spending across the broader economy.

Age Divide: Elderly Workers Drive Gains While Younger Cohorts Struggle
The headline growth was carried almost entirely by older workers. Employment among those aged 60 and above surged by 189,000 on an annual basis, with workers in their 30s and 50s adding 84,000 and 11,000 jobs respectively. In stark contrast, employment among workers in their 20s and 40s contracted — falling by 195,000 and 17,000 respectively — highlighting a deepening generational divide in the labor market.

Sectoral Breakdown: Healthcare Leads, Tech and Construction Sink
Among industries, the health and social welfare sector posted the strongest gains, adding 261,000 jobs year-on-year. The arts, sports and leisure services sector expanded by 54,000, while real estate added 49,000 positions.

Manufacturing shed 55,000 jobs in April compared to the same period last year, extending a downward streak to a 22nd straight month of contraction. The construction sector shed a further 8,000 positions, marking a 24th consecutive month of decline.

Most alarmingly, employment in the science and technology services sector plunged by 115,000 — the steepest drop since records in the category began in 2013, raising concerns over the health of one of South Korea's most strategically significant industries.

Worker Categories: Regular Jobs Gain, Irregular Work Contracts
Among employment types, regular workers and daily laborers increased by 62,000 and 22,000 respectively, while the number of irregular employees fell by 127,000. On the self-employment front, those running businesses with staff on payroll grew by 99,000, and solo self-employed workers without hired help rose by 41,000.

Unemployment Holds Steady, But Inactivity Grows
The employment rate for those aged 15 and older edged down 0.2 percentage points year-on-year to 63.0% in April. The OECD-standard hiring rate for the 15–64 age bracket, however, nudged up 0.1 percentage points to 70.0%.

The total number of unemployed persons stood at 853,000 in April, a marginal decline of 2,000 from a year earlier. The official unemployment rate held steady at 2.9%.

The broader labor underutilization rate — which incorporates discouraged workers, involuntary part-timers, and recent graduates awaiting employment — fell 0.4 percentage points to 8.3%. For those aged 15 to 29, the corresponding figure dropped 0.7 percentage points to 16.1%.

The economically inactive population — comprising those who have abandoned the job search entirely — rose by 174,000 year-on-year to 16,152,000 in April. Discouraged job seekers increased by 15,000 to 353,000, while the so-called "take-a-rest" group — individuals who reported simply resting during the survey period, and who may include long-term discouraged workers — climbed 63,000 to 2,497,000, a figure analysts say warrants sustained attention as a barometer of hidden labor market stress.

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