SEOUL, October 16 (AJP) — The extraordinary chip boom fueling full-capacity production and expansion at South Korea’s chip factories has spilled over to the job front, lifting factory employment for the first time in more than two years, although opportunities for young people remained constrained.
The number of employed people rose by 113,000 from a year earlier to 29.266 million in September, according to data released Friday by the Ministry of Data and Statistics (MODS).
Manufacturing employment increased by 16,000, reversing a decline of 38,000 in August and snapping a 26-month losing streak.
“Employment declined in automobiles and textile products, but increased in chemicals, fabricated metal products and other transportation equipment, turning overall manufacturing employment positive,” Bin Hyun-jun, director general of MODS’ Social Statistics Bureau, said at a briefing Friday.
Separate employment-insurance data released by the Ministry of Employment and Labor this week also pointed to firmer labor demand in chip-related manufacturing.
Manufacturing employment-insurance subscribers increased by 8,000 from a year earlier in September, marking a second consecutive month of gains, led by other transportation equipment, electronics and communications equipment and machinery.
The labor ministry said employment growth in electronics and communications equipment accelerated mainly in semiconductor manufacturing as chip exports surged. Hiring in machinery also strengthened as increased semiconductor investment boosted demand for chip-making equipment.
The two sets of figures are not directly comparable. MODS’ economically active population survey is based on households and covers a broader range of workers, while the labor ministry data tracks workers enrolled in employment insurance.
Overall job growth slowed from an increase of 184,000 in August, although employment has now increased for four consecutive months.
The employment rate for people aged 15 to 64, the comparison standard used by the Organization for Economic Cooperation and Development, rose 0.2 percentage point from a year earlier to 70.6 percent.
The overall unemployment rate fell 0.1 percentage point to 2.0 percent.
Health and social welfare services added 207,000 jobs from a year earlier, while transportation and storage gained 54,000 and financial and insurance services added 32,000.
By contrast, accommodation and food services lost 97,000 jobs, agriculture, forestry and fishing shed 94,000 and education services lost 53,000. Construction employment declined by 48,000.
The sharp fall in accommodation and food-service employment partly reflected a high comparison base created by last year’s consumption-coupon program, according to MODS.
Employment among people aged 15 to 29 fell by 147,000 from a year earlier, while their employment rate dropped 1.1 percentage points to 44.0 percent.
The decline extended a prolonged deterioration in youth employment, with the number of employed people aged 15 to 29 falling for a 47th consecutive month.
Their unemployment rate rose 0.6 percentage point from a year earlier to 5.4 percent.
The age divide remained pronounced. Employment among people in their 20s fell by 170,000 and jobs among those in their 40s declined by 42,000.
Employment among people aged 60 and older, meanwhile, increased by 172,000, while jobs among those in their 30s and 50s rose by 81,000 and 48,000, respectively.
MODS also began publishing employment indicators for people aged 15 to 34 in September, reflecting the expanded definition of youth under the Youth Employment Promotion Special Act.
Under the new measure, the youth employment rate stood at 56.1 percent, down 0.4 percentage point from a year earlier, while the unemployment rate rose 0.1 percentage point to 4.2 percent.
The number of employed people aged 15 to 34 fell by 98,000 from a year earlier to 6.412 million, showing that weakness persisted even under the broader statutory definition of youth.
The economically inactive population increased by 179,000 from a year earlier to 16.188 million.
The number of people aged 15 to 29 classified as “resting,” meaning they were neither working nor actively seeking work for no specific reason, fell by 44,000 to 364,000.
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