South Korea's July employment up 108,000, but youth job market struggles continue

South Korea's job market showed a year-on-year increase of 108,000 employed individuals in July, marking the first time in four months that the monthly gain surpassed 100,000. This growth follows a dip in May, with employment rising for two consecutive months.

However, the overall employment increase was largely fueled by a significant rise in jobs for individuals aged 65 and older, who accounted for over three times the total job growth. In contrast, the number of employed people aged 15 to 64 decreased by 226,000. This demographic trend highlights a widening gap in the labor market, with older workers driving headline figures while the working-age population sees a decline.

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Our country's population is increasing centered on the elderly, while the population aged 15-64 is decreasing, and employment is following the same trend.

The situation for younger workers remains challenging. Youth employment (ages 15-29) fell for the 45th consecutive month, down 191,000 from the previous year. Correspondingly, the youth employment rate dropped for the 27th month in a row. The youth unemployment rate climbed by 1.3 percentage points to 6.8%, the sharpest increase in over five years, indicating growing difficulties for young job seekers.

Industries like healthcare and social welfare services saw significant job gains, while manufacturing, agriculture, forestry, fishing, and construction experienced continued declines. Manufacturing employment has now decreased for 25 consecutive months. A government official noted that while the overall employment figures are rising due to the aging population, the decline in the 15-64 age group suggests the current employment situation is not robust.

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Although employment among the elderly aged 65 and over is increasing, employment among those aged 15-64 is decreasing, making it difficult to view the current employment situation as good.