Seoul: South Korea added nearly 170,000 jobs in August, but employment losses continued in the manufacturing and construction sectors, as well as among the younger population, data showed Wednesday. The number of employed people stood at 28.97 million last month, up 166,000 from a year earlier, marking the third consecutive month of over 100,000 employment growth.
According to Yonhap News Agency, the August figure highlights a continued upward trend in employment following a brief contraction in December, when the country experienced a net loss of 52,000 positions. Since then, the labor market has shown signs of modest recovery, with 245,000 jobs added in May, followed by 183,000 in June and 171,000 in July. August also marks the eighth consecutive month of on-year growth.
Despite the overall growth, the manufacturing and construction sectors remained sluggish. The manufacturing sector, often considered the backbone of the South Korean economy, shed 61,000 jobs from a year earlier in August, extending its downturn to a 14th consecutive month. The construction industry also faced challenges, losing 132,000 jobs, continuing its decline for the 16th straight month.
Last month's overall job growth was largely driven by hiring among older adults. Employment among those aged 60 and older surged by 401,000 from a year earlier, while jobs for people in their 30s rose by 96,000. In contrast, younger age groups saw notable declines, with jobs for people in their 20s falling by 195,000, accelerating from 130,000 losses in the previous month. Jobs for those in their 40s decreased by 73,000. Statistics Korea noted that these age groups are also experiencing population declines, contributing to the employment drop.
The employment rate for people aged 15-64 edged up 0.1 percentage point from a year earlier to 69.9 percent in August. However, the employment rate for those aged 15 to 29 stood at 45.1 percent, down 1.6 percentage points on-year. The number of economically inactive people went up by 9,000 from a year earlier to 16.22 million. Among them, the number of people who reported being out of work simply to rest rose by 2.9 percent, or 73,000 people, according to the agency.
Gong Mi-sook, an official from Statistics Korea, commented, "Recently, the job market has favored experienced positions and transitioned to ad-hoc recruitment, contributing unfavorably to the youth."