In May, the number of employed individuals in South Korea decreased for the first time in 19 months, despite a strong export performance led by semiconductors. The decline in manufacturing jobs has been significant, and the drop in youth employment has reached its highest level since the COVID-19 pandemic began.
According to the National Data Agency's "May 2026 Employment Trends" report released on June 11, the number of employed individuals aged 15 and older fell by 40,000 from the previous year to 29.12 million.
This marks the first year-on-year decrease in employment since December 2024. After an increase of 108,000 jobs in January, the employment growth slowed to around 200,000 in February and March, then dropped to an increase of 74,000 in April before turning negative in May.
The employment rate also declined, with the rate for those aged 15 and older at 63.3%, down 0.5 percentage points from a year earlier. This is the second consecutive month of decline following April's drop. The employment rate for those aged 15 to 64, as per OECD standards, is 70.2%, a decrease of 0.3 percentage points compared to the same month last year.
The manufacturing sector has seen a notable downturn, with 4.295 million employed in this field, a decrease of 140,000 from the previous year. This decline is significantly larger than the 55,000 job loss reported in April, marking the 23rd consecutive month of job losses in manufacturing.
The National Data Agency noted reductions in employment in the automotive and rubber/plastics industries. While recent export growth has been driven by semiconductors, the overall share of semiconductor jobs in the manufacturing sector is limited, which constrains potential improvements in employment.
In addition to manufacturing, employment in agriculture, forestry, and fishing fell by 121,000, while professional, scientific, and technical services saw a decrease of 89,000 jobs. The construction sector also lost 43,000 jobs.
Conversely, the health and social services sector added 212,000 jobs, while arts, sports, and leisure services increased by 44,000, and transportation and warehousing saw a rise of 36,000 jobs.
The employment situation for young people has worsened, with 255,000 fewer individuals aged 15 to 29 employed compared to the previous year. This is the largest drop since January 2021, when the pandemic had a significant impact on employment.
The youth employment rate stands at 43.8%, down 2.4 percentage points from a year earlier. The youth unemployment rate has risen to 7.2%, an increase of 0.6 percentage points from the previous year.
Overall, there are 878,000 unemployed individuals, an increase of 25,000 from the same month last year, with the unemployment rate at 2.9%, up 0.1 percentage points.
The economically inactive population has grown to 15.986 million, an increase of 264,000. Among these, the number of individuals engaged in household duties and studying has risen, while those involved in childcare has decreased. The number of individuals who reported being "inactive" has also increased by 47,000.
These employment figures illustrate that a recovery in exports does not necessarily lead to an immediate recovery in jobs. The simultaneous decline in manufacturing employment and a sharp drop in youth jobs have raised concerns about a slowdown in the labor market.
* This article has been translated by AI.
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