Seoul: South Korea's on-year employment growth experienced a significant slowdown in 2024 as the number of new hires in the manufacturing and retail sectors decreased, along with a decline in employment among young people, according to data released on Wednesday.
According to Yonhap News Agency, the number of employed individuals increased by 159,000, or 0.6 percent, from the previous year, reaching 28.58 million in 2024, as per data compiled by Statistics Korea. This figure represents a notable drop from the post-pandemic job creation surge, which saw 816,000 new positions in 2022, marking the largest on-year growth since 2000. The growth pace decelerated to 327,000 in 2023 before further declining in 2024.
The 2024 employment figures fell short of the government's forecast of 170,000 job additions. The construction sector experienced the sharpest decline since data collection began in 2013, shedding 49,000 jobs. The wholesale and retail sector lost 61,000 jobs, marking the seventh consecutive year of decline. Employment in business facilities management and rental services decreased by 52,000, marking its first decline since 2018, largely attributed to the construction downturn. On a positive note, the medical and social welfare service segment added 83,000 new jobs.
By age group, employment for individuals aged 60 and older saw an increase of 266,000, the largest among all age groups. Conversely, jobs for those aged 15-29 declined by 124,000 due to the shrinking population of that age group. Suh Woon-ju, an official at Statistics Korea, noted, "The overall employment figure turned to a decline as the number of employed people decreased across industries, including the construction, manufacturing, and wholesale and retail sectors."
South Korea's unemployment rate edged up by 0.1 percentage point to 2.8 percent in 2024. Meanwhile, the employment rate for individuals aged 15-64 rose by 0.3 percentage point on-year, reaching 69.5 percent, the highest since the statistics agency began compiling this data. The country recorded a net loss of 52,000 jobs in December compared to the previous year, contrasting sharply with the 120,000 jobs added the month before. This marked the first on-year decline in employment in nearly four years. Suh also noted that while retail employment worsened, growth in transportation, storage, and accommodation services continued, albeit at a slower rate.