South Korea Adds 108,000 Jobs in July, Youth Unemployment Rate Rises to 6.8%

According to data released by South Korea's Statistics Korea, the number of employed persons in July increased by 108,000 year-on-year to 29.13 million, marking the second consecutive month of positive growth. The unemployment rate rose by 0.2 percentage points year-on-year to 2.6%, with the number of unemployed increasing by 50,000 to 776,000. The overall employment rate slightly decreased by 0.1 percentage points to 63.3%, continuing a four-month decline; the employment rate for those aged 15 to 64 rose by 0.1 percentage points year-on-year to 70.3%.

Employment in the manufacturing sector decreased by 68,000 year-on-year, marking the 25th consecutive month of contraction; the construction sector saw a reduction of 57,000 jobs, continuing a 27-month decline; and the agriculture, forestry, and fishing sectors lost 80,000 jobs. Growth was primarily concentrated in healthcare and social welfare services, which added 173,000 jobs, public administration, which increased by 46,000 jobs, and arts, sports, and leisure services, which gained 48,000 jobs.

The employment situation for youth is severe, with the number of employed persons aged 15 to 29 dropping sharply by 191,000 year-on-year, marking the 45th consecutive month of decline; the employment rate for this age group fell by 1.6 percentage points year-on-year to 44.2%, while the unemployment rate surged by 1.3 percentage points year-on-year to 6.8%, the largest increase in over five years. The employment rate for those aged 65 and older rose by 0.8 percentage points year-on-year to 41.5%. The economically inactive population increased by 99,000 year-on-year to 16.1 million, but the number of "purely resting" individuals decreased by 62,000 year-on-year to 2.51 million. South Korea's Ministry of Economy and Finance pointed out that factors such as tensions in the Middle East, heatwaves, and adverse weather conditions are putting downward pressure on the job market, and it has pledged to stabilize employment growth through inter-departmental collaboration.