Middle East Conflict Impacts Job Market; Government Plans Response for Vulnerable Groups

Job seekers examine job postings at the 2026 Environmental Industry Job Fair held at the aT Center in Seocho-gu, Seoul. [Photo=Yonhap News]

The job market is feeling the effects of the ongoing Middle East conflict, with the number of employed individuals decreasing for the first time in 17 months. In response, the government is taking steps to develop job policies aimed at vulnerable groups.

On June 23, Lee Hyung-il, First Vice Minister of Finance, and Kwon Chang-jun, Vice Minister of Employment and Labor, chaired a joint meeting of the Job Task Force at the Government Seoul Complex. The meeting focused on additional measures to support youth employment and discussed employment trends and responses by sector.

As uncertainty remains regarding the implementation of the Memorandum of Understanding (MOU) for peace between the United States and Iran, the job market continues to suffer. According to the National Data Agency, the number of employed individuals fell by 40,000 last month compared to the same month last year, marking the first decline in 17 months. The manufacturing, construction, and agriculture sectors are particularly affected.

In light of this, the government plans to analyze struggling sectors such as manufacturing, construction, and agriculture, as well as vulnerable groups like youth, to develop sector-specific response strategies, including a 'Youth Employment Recovery Plan.'

The government will also accelerate the execution of previously announced youth New Deal initiatives. It aims to expand high-demand, high-impact projects and enhance job-seeking capabilities through education in advanced fields like artificial intelligence (AI). Additionally, the government is actively seeking ways to connect job seekers with employment opportunities and promote new hiring of youth by businesses using AI.

A Ministry of Finance official stated, "We will actively identify and resolve field-related challenges in various sectors related to employment and will explore and discuss diverse tasks to mobilize all available policy tools in response."

* This article has been translated by AI.