Korea’s Job Market Bounces Back with Surge in Employment Among Older Adults
Korea’s job market saw a promising rebound in August after four consecutive months of decline, driven by a noteworthy increase in job opportunities for older adults. According to the latest data released by Statistics Korea on Wednesday, the number of employed individuals reached 28.7 million in August, reflecting a year-on-year rise of 268,000.
This positive growth comes after the country experienced a significant slowdown in July, with only 211,000 new jobs created compared to previous months. However, heavy rainfall was identified as the primary factor behind the temporary setback. The unemployment rate in August stood at 2 percent, marking a 0.1 percentage point decrease from the previous year. Additionally, the number of unemployed individuals reached a new low at 573,000, down 41,000 compared to the same period last year.
One of the driving forces behind this growth is the increasing demand for care-taking services, alongside the growing interest in outdoor activities among individuals. Older adults, aged 60 and above, contributed significantly to the overall rise in employment, with 304,000 new positions created for this age group. Moreover, the number of job opportunities also rose for individuals in their 50s and 30s, with increases of 73,000 and 64,000, respectively.
However, when excluding the age group of 60 and above, the country experienced a decline of 36,000 jobs year-on-year in August. Individuals in their 20s faced the most significant impact, with a decrease of 91,000 positions. Examining sectors, the welfare and social service segments witnessed a notable increase of 138,000 new jobs, followed by the accommodation and restaurant sectors with an addition of 121,000 positions. The science and technology sectors also experienced growth, adding 57,000 new jobs.
Conversely, the wholesale and retail sectors suffered a loss of 69,000 jobs, and a similar decline was observed in the manufacturing industry. Notably, the manufacturing industry has witnessed eight consecutive months of slower job growth. The Ministry of Economy and Finance has highlighted the need for caution, especially regarding the manufacturing and construction segments, despite signs of economic recovery driven by the service sector and the resumption of China’s group tours to Korea.
The employment-to-population ratio for Koreans aged 15 to 64 increased by 0.7 percentage points, reaching 69.6 percent. This improvement signifies a positive trend in the job market, albeit with a need for continued vigilance.
In conclusion, Korea’s job market showed signs of revival in August, putting an end to a four-month streak of declining employment numbers. While the growth was led by job opportunities for older adults, there were concerns about specific sectors, such as manufacturing and construction. The government remains optimistic about the service sector and anticipates further recovery in the coming months, particularly with the resumption of tourism activities from China. However, the overall economic outlook requires careful monitoring to ensure a sustained and inclusive recovery for all age groups and industries.
