Youth job opportunities shrink despite record-high employment

A jobseeker looks at postings on a government-run labor and welfare service center wall in western Seoul's Mapo District, Wednesday. Yonhap

By Yi Whan-woo

Opportunities for young jobseekers in Korea are shrinking despite the overall employment rate for the working-age population reaching record highs of nearly 70 percent, data showed on Wednesday.

Statistics Korea said the number of newly created jobs for people aged 15 to 29 shrank by 99,000 in May from a year earlier, marking the seventh consecutive year-on-year decrease.

On the other hand, the employment-to-population ratio of those aged 15 to 64, who are categorized as the working-age population by the OECD, reached 69.9 percent last month.

The ratio is the highest for any month of May in the years the relevant data has been compiled.

The statistics agency said the employment-to-population ratio for those aged 15 or above stood at 63.5 percent, which also marked the highest level for the same month.

This contrast between fewer jobs for young people and the high employment rate comes as the birthrate is at record lows and the number of elderly people continues to increase.

Correspondingly, the job additions have been led mostly by those aged 60 and above, with the number of new jobs inching up to 379,000 for the age group.

Excluding seniors, however, the number of new jobs dropped by 28,000.

By age group, a total of 49,000 jobs were added for those in their 50s and another 70,000 for those in their 30s.

But the number of jobs diminished by 48,000 for those in their 40s, to marking a drop in this figure for the 12th consecutive month.

For those in their 30s, the number of jobs dropped by 63,000.

“The number of young people is decreasing and that is affecting the job growth in the respective age groups,” a senior Statistics Korea official said.

By industry, the number of jobs in the manufacturing sector dropped by 39,000, falling for the fifth month amid an export slump.

The construction industry saw the steepest job decline in 42 months, with 66,000 fewer jobs compared to a year earlier.

The number of jobs increased by 166,000 for caretaking services, 128,000 for lodging and restaurants and 111,000 for advanced science and technology.

The Statistics Korea official assessed the manufacturing sector as especially affected by weakened global demand for semiconductors and petrochemical products.

The official remained skeptical about the job market prospects. “Sluggish exports and persistently high inflation will continue to work as downward pressure on employment despite the recovery of outdoor activities,” he said.

Meanwhile, the Ministry of Economy and Finance announced that it will come up with additional measures next month to help industries facing labor shortages fill job vacancies.