Number of Employed Falls for First Time Since Martial Law Amid Middle East War; Manufacturing Down 140,000 in May

The number of employed people fell last month for the first time in one year and five months.

Despite an unprecedented semiconductor boom, manufacturing jobs plummeted as the war in the Middle East dragged on.

Youth employment was the weakest since the COVID-19 pandemic.

According to the "May Employment Trends" released by the Ministry of Data and Statistics on June 11, the number of employed people aged 15 and older last month stood at 29.12 million, down 40,000 from the same month last year.

This is the first time the number of employed people has decreased since December 2024 (-52,000), when domestic demand sentiment cooled in the aftermath of emergency martial law and year-end government job programs came to an end.

Since the beginning of this year, the number of employed people grew by 108,000 in January, and the increase expanded to the 200,000 range in February and March, before narrowing to 74,000 in April.

The employment rate for those aged 15 and older was 63.3 percent, down 0.5 percentage points (p) from last year, marking the second consecutive monthly decline following April (-0.2 percentage points).

The decline was the largest in five years and three months since February 2021 (-1.4 percentage points).

By industry, manufacturing lost 140,000 jobs, continuing its decline for the 23rd consecutive month.

The margin of decline more than doubled compared to April (-55,000).

This is the sharpest decline since February 2019 (-151,000).

It is analyzed to have been affected by rising oil prices, unstable supply and demand of raw materials, and export disruptions caused by the war in the Middle East.

In the case of the semiconductor industry, which has recently driven export growth, the job creation effect is relatively small.

"The decline in the number of employed people in the food and automobile sectors has expanded," said Bin Hyun-joon, Director General for Social Statistics at the Ministry of Data and Statistics. "The share of semiconductors in employment is not large."


Agriculture, forestry, and fisheries also decreased by 121,000.

Professional, scientific, and technical services fell by 89,000, continuing a downward trend for the sixth consecutive month.

While concerns have been consistently raised that the hiring of new professionals may have shrunk due to the impact of artificial intelligence (AI), the government is still reserving judgment on any direct impact.

Wholesale and retail trade, an industry related to domestic demand, fell by 36,000, declining for the third consecutive month.

On the other hand, accommodation and food services grew by 20,000, turning upward for the first time in seven months.

The number of employed people also increased in arts, sports, and recreation-related services (44,000) and transportation and warehousing (36,000).

The Ministry of Data and Statistics explained that this appeared to be partly affected by the disbursement of damage support funds for high oil prices.

Healthcare and social welfare services also rose by 212,000, maintaining a robust upward trend.

The slump among the youth, a vulnerable employment group, widened.

The number of employed youth (aged 15 to 29) decreased by 255,000 compared to a year ago.

This is the largest decline since January 2021 (-314,000), when the impact of COVID-19 was significant.

The youth employment rate stood at 43.8 percent, down 2.4 percentage points from a year earlier.

The decline was also the largest since January 2021 (-2.9 percentage points).

The number of employed people in their 40s also decreased by 43,000.

On the other hand, those aged 60 and older, who have been driving the recent job market, increased by 171,000.

Those in their 30s and 50s also increased by 62,000 and 25,000, respectively.

The number of unemployed people rose by 25,000 to 878,000, and the unemployment rate rose by 0.1 percentage point to 2.9 percent.

The economically inactive population increased by 264,000, and among them, the population who "took a break" rose by 47,000.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.