South Korea added 108,000 new jobs in July, with the youth unemployment rate jumping to 6.8%. The number of employed youth has decreased for 45 consecutive months.

August 12. Today, the Korean Statistical Office announced that the number of employed persons in July increased by 108,000 year-on-year to 29.13 million, marking the second consecutive month of growth after an increase of 63,000 in June. In May, there was a decrease for the first time in 17 months (a reduction of 40,000). The unemployment rate increased by 0.2 percentage points year-on-year to 2.6%, with the number of unemployed persons increasing by 50,000 to 776,000. The overall employment rate slightly decreased by 0.1 percentage points to 63.3%, continuing to slide for four consecutive months; however, the employment rate for those aged 15 to 64 increased by 0.1 percentage points year-on-year to 70.3%.

The employment structure in Korea continues to diverge. Employment in the manufacturing industry decreased by 68,000 year-on-year, shrinking for the 25th consecutive month, but with a narrower decline compared to the 97,000 decrease in June; employment in the construction industry decreased by 57,000, marking a 27th straight month of decline; and employment in the agriculture, forestry, and fisheries sector decreased by 80,000. The growth side was mainly concentrated in the medical and social welfare services, adding 173,000 jobs; public administration, adding 46,000 jobs driven by civil service examinations, tax offices, interns, and other recruitment activities; and arts, sports, and leisure services, adding 48,000 jobs.

The youth employment situation in Korea is particularly severe. The number of employed persons aged 15 to 29 plummeted by 191,000 year-on-year, declining for the 45th consecutive month; the employment rate in this age group decreased by 1.6 percentage points year-on-year to 44.2%, continuing to slide for the 27th consecutive month; and the unemployment rate skyrocketed by 1.3 percentage points year-on-year to 6.8%, marking the largest year-on-year increase in over five years.

For Koreans aged 65 and above, the employment rate increased by 0.8 percentage points year-on-year to 41.5%. The economically inactive population increased by 99,000 year-on-year to 16.10 million, but the "purely resting" population decreased by 62,000 year-on-year to 2.51 million. The Korean Ministry of Economy and Finance pointed out that factors such as the Middle East tension, heatwaves, and adverse weather have exerted downward pressure on the labor market, and pledged to stabilize the momentum of employment growth through inter-departmental cooperation.