Manufacturing employment rises for first time in 15 months, while youth jobs decline for fourth year

South Korea’s manufacturing employment-insurance rolls turned upward for the first time in 15 months in August, driven by stronger activity in semiconductor-related industries, shipbuilding and food manufacturing.

The Ministry of Employment and Labor said on Sept. 7 that the number of regular employment-insurance subscribers reached 15.905 million last month, up 278,000 from a year earlier. Monthly gains have remained in the high 200,000s throughout the year.

Manufacturing subscribers rose by 2,000 to 3.847 million. Employment increased in other transport equipment, electronics and communications, food products, and machinery and equipment, while nonmetallic minerals, textiles and chemical products recorded declines.

Jo Won-sik, an official at the ministry’s Future Employment Analysis Division, attributed the manufacturing increase partly to export strength. He said shipbuilding had boosted the other transport equipment category, while rising K-food exports appeared to have supported food manufacturing employment. Semiconductor-related sectors, including medical, precision and optical equipment and machinery, also contributed.

Service-sector employment-insurance subscriptions rose by 280,000, led by an increase of 112,000 in health and social welfare as an aging population continued to generate demand. Construction, however, remained in decline, falling by 7,000 last month and extending its downturn to 37 consecutive months, mainly in general construction.

Older workers continued to lead employment growth. Subscribers aged 60 and above increased by 207,000 year on year, followed by those in their 30s, up 85,000, people in their 50s, up 38,000, and those in their 40s, up 3,000. Subscribers aged 29 or younger fell by 56,000. The decline among younger workers has continued for nearly four years since September 2022, reflecting a shrinking youth population and difficulties finding new jobs.

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Medical, precision and optical equipment and machinery and equipment, which are related to semiconductors, contributed, while other transport equipment was affected by the recent increase in shipbuilding exports. Rising K-food exports also appear to have influenced the increase in food manufacturing employment.