South Korea’s job growth slowed significantly in January, with just over 100,000 new positions added, according to recent data. This marks the slowest year-on-year increase in 13 months.
Data from the Ministry of Data and Statistics reveals that the number of employed individuals rose by 108,000, a 0.4 percent increase from the previous year, reaching 27.99 million in January.
This represents the smallest gain since December 2024, when the country experienced a loss of 52,000 jobs.
The subdued growth reflects ongoing challenges in the manufacturing and construction sectors. Furthermore, youth unemployment continues to be a concern, with employment figures declining for the 21st consecutive month.
Specifically, employment for those aged 15 to 29 experienced a significant drop of 175,000 in January. This decline pushed the employment rate for this age group down by 1.2 percentage points year-on-year, settling at 43.6 percent.
This represents the lowest January figure since 2021, when the rate was 41.1 percent.
Employment among individuals in their 40s also saw a slight decrease, with a reduction of 3,000 jobs.
Even the older worker demographic, which has been a driving force in the labor market in recent years, is showing signs of weakness.
Employment among those aged 60 and older increased by 141,000, the smallest rise for January since 2021, which saw a decrease of 15,000 jobs.
In the past year, monthly gains for this age group have ranged between 200,000 and 400,000.
“The continued decline in agriculture, forestry, and fisheries due to aging, combined with January’s cold wave, reduced older workers’ activity levels,” explained Bin Hyun-joon, a ministry official.
He further noted that delays in resuming government-run senior employment programs, caused by the cold weather, contributed to some elderly individuals being classified as unemployed or economically inactive.
Conversely, employment rose among those in their 30s and 50s, with increases of 101,000 and 45,000 jobs, respectively.
Looking at industry sectors, professional, scientific, and technical services experienced the largest year-on-year drop in employment, with a decrease of 98,000 positions. This is the most significant decline since the industry classification system was revised in 2013.
The manufacturing sector, a cornerstone of the South Korean economy, saw a reduction of 23,000 jobs compared to the previous year, extending its downturn for the 19th consecutive month.
The construction sector also recorded a significant decline of 20,000 jobs, marking its 21st straight month of losses.
The number of economically inactive individuals increased by 4,000 year-on-year, reaching 16.72 million.
