Korea adds fewest new jobs in three years in March

Job seekers check job postings at an employment center in Seoul on Friday. [Yonhap]

Korea added the smallest number of jobs in three years in March due to a high base effect and abnormal weather that cut jobs in the agricultural sector.

The youth employment rate fell for the first time in six months, though the manufacturing sector reported job growth for the fourth consecutive month on the recovering semiconductor sector.

The number of employed people came to 28.39 million last month, up 173,000 from a year earlier, according to data compiled by Statistics Korea.

It marked the fewest number of new jobs since February 2021, when the country lost 473,000 job posts on year amid the Covid-19 pandemic.

On-year job growth peaked in January 2022, when the country recorded 1.13 million new jobs, and has slowed to around the 200,000 to 300,000 level.

In February 2024, 329,000 jobs were added on-year, the second consecutive month that on-year job additions stayed over 300,000.

"Last month's slower growth was due mainly to a high base effect, as 469,000 jobs were created in March 2023. Bad weather conditions also led to a sharp decline in the number of jobs in the agricultural and fishing sector," Seo Woon-joo, an official at the agency, said.

The agricultural and fishing sector lost 50,000 workers, marking the largest fall since March 2017 when it shed 56,000 jobs.

The wholesale and retail field also reported an on-year job decline of 14,000 positions last month.

But the manufacturing sector added 49,000 more jobs in March, marking the fourth monthly uptick on the back of rising exports.

Exports, a key growth engine for Korea, advanced for the sixth consecutive month in March on solid demand for semiconductors.

The restaurants and accommodation sector also had 7,000 new positions, the first on-year gain in three months amid weak private consumption, data showed.

The number of newly employed people in their 60s rose the most, by 233,000, followed by 91,000 people in their 30s and 59,000 in their 50s.

“The working age is shifting to the 30s from the previous 20s as companies prefer to hire experienced workers,” Seo added. “The youth employment rate itself is very high.”

March's slower job growth was also attributable to demographic changes.

The number of people aged 15 to 64 in Korea has decreased in recent years, from a peak of 36.87 million in 2017 to 36.69 million in 2020 and then to 36.32 million in 2022, due mainly to the low birthrate and populating aging, the agency said.

As of last month, the number further dropped to 35.73 million.

In the first quarter of 2024, the country added 294,000 new jobs, compared to 303,000 posts in the fourth quarter of last year, according to the Finance Ministry.

“Economic recovery is spreading centered on exports and conditions for the job market are projected to remain favorable,” the Finance Ministry said in a statement. But it cited risks as recovery in domestic demand and construction sector remain.

BY JIN MIN-JI [jin.minji@joongang.co.kr]