Employment Falls for 3rd Month Despite Semiconductor Export Recovery... Youth Unemployment Severe

Despite signs of an economic recovery driven by a rebound in semiconductor exports, actual jobs have declined for three consecutive months, and unemployment among the youth is deepening. Last month, the number of employed people increased by 63,000 compared to the same month last year, but the employment rate stood at 63.4%, marking a decline for three straight months.

By industry, the number of employed in the construction sector fell by 67,000, marking a decline for 26 consecutive months. The manufacturing sector saw a decrease of 97,000, falling for 24 consecutive months. Bin Hyeon-jun, Director of the Social Statistics Division at the National Data Agency, explained that the job creation effect in sectors driving the economy is relatively low, preventing a direct impact on employment.

The youth (15-29 years old) employment rate also fell 1.7 percentage points to 43.9%, recording a decline for 26 consecutive months. The government announced that to counter worsening youth employment, it will establish a youth job recovery plan focused on workforce training in high-tech fields such as artificial intelligence (AI) within the third quarter of this year.