In October, the number of regular employment insurance subscribers increased by 286,000, continuing a trend of growth for the tenth consecutive month. While the service sector led overall employment growth and manufacturing also showed an upward trend, youth employment remains weak. Notably, the number of subscribers under 29 decreased, indicating ongoing challenges for young job seekers. The construction sector has also experienced a decline for 39 consecutive months.
According to the Ministry of Employment and Labor's "October 2026 Employment Administration Statistics," the total number of regular employment insurance subscribers reached 15,974,000, an increase of 286,000 (1.8%) compared to the previous year. This marks ten months of consistent growth in the late 200,000s since January. The service sector saw an increase of 276,000 subscribers, driving the overall growth, while manufacturing added 14,000 subscribers. Conversely, the construction sector saw a decrease of 5,000.
The employment struggles among youth are particularly pronounced. Subscribers under 29 decreased by 54,000, making them the only age group to experience a decline. In contrast, the number of subscribers in their 30s increased by 91,000, while those in their 40s rose by 5,000, 50s by 41,000, and those aged 60 and older by 204,000.
The decline in youth employment is attributed to sluggish hiring in key industries such as manufacturing. According to the ministry, the drop in subscribers under 29 is concentrated in sectors like manufacturing, information and communications, health and welfare, and professional scientific and technical services. Jo Won-sik, head of the Ministry's Future Employment Analysis Division, explained in a briefing, "The population of those under 29 has decreased by 143,000, impacting employment in manufacturing, information and communications, health and welfare, and professional scientific and technical services."
Looking specifically at manufacturing, employment trends are showing improvement. The number of employment insurance subscribers in manufacturing reached 3,858,000, an increase of 14,000 from the previous year, marking three consecutive months of growth. Growth was driven by sectors such as machinery, electronics and communications, and other transportation equipment. Notably, the electronics and communications manufacturing sector saw an increase in subscribers, particularly in semiconductors, while machinery also expanded due to special-purpose machinery related to semiconductor manufacturing.
However, caution is advised in interpreting the increase in manufacturing employment as a clear sign of economic recovery. The rise in foreign subscribers under the employment permit system significantly influenced the manufacturing growth figures. Last month, foreign subscribers under this system increased by 12,000, with 90.2% concentrated in manufacturing. Excluding foreign workers, the increase in manufacturing subscribers was limited to just 2,000.
The automotive manufacturing sector continues to face employment challenges. The number of subscribers in automotive manufacturing stood at 405,000, down 700 from the previous year, marking an eight-month decline. However, the rate of decrease has slowed compared to the previous month. In contrast, the other transportation equipment manufacturing sector, which includes shipbuilding, saw an increase of 7,300 subscribers, continuing a growth trend for 47 months. Jo Won-sik noted, "The semiconductor sector seems to have the most significant impact, and shipbuilding also appears to be a major factor."
The construction sector remains mired in prolonged decline. Last month, the number of employment insurance subscribers in construction was 742,000, down 5,000 from the same month last year. This marks the 39th consecutive month of decline since August 2023. However, the rate of decrease has shown signs of slowing recently, particularly in the general construction sector, which includes construction headquarters.
The service sector continued its trend of employment growth. Subscribers reached 11,223,000, an increase of 276,000. The health and welfare sector saw the largest increase, adding nearly 120,000 subscribers, followed by accommodation and food services with 49,000, business services with 23,000, and professional scientific and technical services with 22,000. Nonetheless, even in the service sector, subscribers under 29 decreased by 33,000, highlighting the challenges facing youth employment across industries.
In terms of jobless benefits, new applications increased. Last month, new applications for unemployment benefits rose to 81,000, up 6,000 (7.5%) from the previous year. Conversely, the number of beneficiaries decreased by 4,000 to 571,000, and the total payout dropped by 468 billion won (4.5%) to 1 trillion 25 billion won. The ministry attributed the increase in new applicants to a rise in working days.
New job openings and job seekers through Employment 24 also increased. New job openings reached 165,000, up 23,000, while new job seekers totaled 360,000, an increase of 25,000. The job opening ratio, which indicates the number of job openings per job seeker, rose to 0.46, marking an eight-month consecutive increase. However, the increase in new job seekers was also influenced by the fact that this year's Chuseok holiday occurred in September, resulting in a difference in working days compared to last year. Jo noted, "This year, the number of business days for employment centers in October increased by two days, which we believe has had an impact."
* This article has been translated by AI.
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