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Job creation slows due to sluggish economy
Job seekers look at a job information bulletin board at an employment center in Seoul, Wednesday. Yonhap
By Jun Ji-hye
Jobs in construction see largest decline on record
Approximately 140,000 more people found jobs last month compared to the same month last year, marking the third consecutive month of increases in the 100,000 range, according to Statistics Korea on Wednesday.
However, the latest data shows that the momentum regarding job creation has significantly slowed down, compared to the beginning of the year when the figure exceeded 300,000.
The number of jobs in the construction industry saw the largest decrease on record, reflecting sluggish domestic demand.
The data released by the statistics agency showed that the number of employed people aged 15 and older stood at 28.84 million in September, an increase of 144,000 compared to the same month last year.
The increase in the number of employed people was 80,000 in May and 96,000 in June. After recovering to 172,000 in July, it remained in the 100,000 range for three consecutive months, with 123,000 in August. Earlier in the year, the figure had exceeded 300,000.
By industry, the number of employed people in the construction sector decreased by 100,000, marking the largest drop on record since the industrial classification was revised to its current form in 2013.
This was attributed to a continued decline in orders resulting from high interest rates. Employment in the construction industry has been decreasing for five consecutive months.
A man shops at an unmanned convenience store in Seoul in this July 8, 2022 photo. Yonhap
In the retail and wholesale sector, there was a decrease in the number of employed people by 104,000, marking a decline for the seventh consecutive month. This drop is the largest since November 2021 when it fell by 123,000. This was attributed to structural changes such as the rise of e-commerce and unmanned sales, as well as the recent sluggish domestic demand.
The manufacturing sector experienced a decline of 49,000 employed people, marking the third consecutive month of decreasing employment.
In contrast, the information and communication sector saw an increase in employment by 105,000, followed by science and technical services with an increase of 83,000 and transportation and warehousing with 79,000.
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By age group, there was an increase of 272,000 employed people aged 60 and older, continuing the trend of older adults leading employment growth.
However, the youth group aged between 15 and 29 saw a decrease of 168,000, while there was a decline of 62,000 among those in their 40s.
The economically inactive population increased by 54,000, reaching 16.21 million.
In particular, the number of people reporting they were not working but taking a break increased by 231,000. Among the youth, this figure rose by 69,000, representing the largest increase in 44 months since January 2021, when it climbed by 112,000.
“We assess the situation as positive as the increase in the number of employed people compared to the previous month has continued,” a government official said.
“However, challenges remain for those in the construction industry and young people. Therefore, we will strengthen tailored job support for these groups and enhance efforts to bolster domestic demand.”