Key facts
- South Korea lost 40,000 jobs in May year-on-year, the first decline in 17 months.
- The total number of employed people fell to 29.12 million.
- The jobless rate increased to 2.9 percent.
- The manufacturing sector saw a significant loss of 140,000 jobs.
- Youth employment rates declined, with the 15-29 age group's rate dropping 2.4 percentage points.
South Korea's job market contracted in May, with a loss of 40,000 jobs compared to the previous year, marking the first decline in 17 months. The total number of employed individuals fell to 29.12 million, and the jobless rate rose to 2.9 percent. The manufacturing sector was particularly hard-hit, shedding 140,000 jobs, while agriculture, forestry, and fisheries also saw significant losses. The decline is attributed partly to the prolonged Middle East war's impact on supply chains and rising raw material costs.
The employment rate for young adults aged 15 to 29 decreased by 2.4 percentage points to 43.8 percent, as companies increasingly prefer experienced candidates. Conversely, job growth was seen in sectors like health and social welfare services, arts, sports, and recreation, as well as transportation and logistics. The accommodation and food service industry also added jobs for the first time in seven months.
The government has pledged to remain vigilant and take proactive steps to address the job market uncertainties stemming from the Middle East conflict.