Korea's job market grows on year in August, first in four months

Economy

Published: 13 Sep. 2023, 10:26 Updated: 13 Sep. 2023, 10:30

Korea's job market grows on year in August, first in four months

Job-seekers talk to company representatives at a career fair at Yeungnam University in Gyeongsan, North Gyeongsang, on Tuesday. [YONHAP]

Korea's job market grew in August to end four straight months of decline, led by increases in jobs among older adults.

The number of employed people came to 28.7 million in August, up 268,000 from a year earlier, according to Statistics Korea Wednesday.

In July, there were 211,000 new jobs on year, the lowest in 29 months. The monthly job additions slowed from April to July.

The unemployment rate was 2 percent last month, down 0.1 percentage point from the previous year. The number of unemployed people for August hit a fresh low at 573,000, down 41,000 on year.

"The growth was led by higher demand for care-taking services, along with the increasing outdoor activities by people," Statistics Korea official said, noting that July's slowdown was primarily caused by heavy rainfall.

Those aged 60 and above led the overall gains, with positions for the age group rising 304,000 on year. The number for those in their 50s and 30s also rose 73,000 and 64,000, respectively, over the period.

Excluding those aged 60 and above, however, the country lost 36,000 jobs on-year in August.

A Statistics Korea official announces Korea's August job data at the government complex in Sejong on Wednesday. [NEWS1]

Positions for people in their 20s fell by 91,000.

By sector, the number of new jobs in the welfare and social service segments moved up 138,000 on year, and those in the accommodation and restaurant sectors advanced 121,000 as more people returned to pre-pandemic normalcy.

The science and technology sectors also added 57,000 new jobs.

In contrast, the wholesale and retail sectors shed 69,000. The manufacturing industry also lost 69,000l.

The on-year job additions in the manufacturing industry have slowed for eight consecutive months.

Meanwhile, the employment-to-population ratio of Koreans aged 15 to 64 edged up 0.7 percentage points to 69.6 percent.

The Ministry of Economy and Finance said the job market will remain solid on the back of the service sector, supported by the resumption of China's group tours to Korea.

"However, despite signs of an economic recovery, we need to remain vigilant about the sluggish trend in the manufacturing and construction segment," the ministry said.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]