South Korea's Employment Falls for First Time in 17 Months, Youth Job Market Suffers

South Korea's job market experienced a downturn in May, with the number of employed individuals decreasing by 40,000 compared to the previous year. This marks the first monthly decline in employment figures in 17 months, signaling a potential weakening of the economic recovery.

The data, released by Statistics Korea, revealed a significant drop in employment among young people, with both the number of employed youth and the youth employment rate falling sharply. Job growth also faltered in key sectors including agriculture, forestry, and fishing; manufacturing; construction; and professional, scientific, and technical services.

This contraction in the labor market is particularly notable as it represents the first instance of negative year-on-year employment growth since December 2024. During that month, the country was under a state of emergency, which had a significant impact on economic activity. The current decline suggests broader economic headwinds may be affecting job creation.