South Korea reports Third Consecutive Month of Job Growth, But Concerns Linger
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Published: october 26, 2023
Overview of August Employment Figures
Seoul,South Korea – South korea’s labor market demonstrated continued resilience in August,adding approximately 166,000 jobs. this marks the third consecutive month of gains exceeding 100,000, according to data released by the Korean Statistics Authority and reported by the Yonhap News Agency.
The total number of employed individuals in the country reached 28.97 million last month, representing a year-over-year increase of 166,000. This positive trend has now persisted for eight consecutive months.
Sectoral Trends: Manufacturing and Construction Lag
despite the overall positive employment figures, certain key sectors continue to face challenges. The manufacturing sector, a cornerstone of the South korean economy, experienced a loss of 61,000 jobs in August compared to the same period last year. This decline extends a slowdown that has now lasted for fourteen months.
the construction sector also continues to struggle, shedding 132,000 jobs, marking its sixteenth consecutive month of decline.
Demographic Shifts in Employment
The recent job growth has been considerably driven by increased employment among older workers. Individuals aged 60 and over saw a substantial increase of 401,000 jobs compared to the previous year.
Employment also rose among those in their thirties,with an increase of 96,000 jobs. Though, younger age groups experienced notable declines. employment for individuals in their twenties decreased by 195,000, following a loss of 130,000 jobs in July. Those in their forties also saw a reduction in employment, with a decrease of 73,000 jobs.
The Statistics Authority notes that these declines in employment among younger and middle-aged demographics correlate with broader population trends, indicating a shrinking workforce in these age groups.
Looking Ahead
While the overall job growth is encouraging, the persistent weakness in manufacturing and construction, coupled with demographic shifts, presents ongoing challenges for the South Korean economy. Continued monitoring of these trends will be crucial for policymakers.
