Job growth in June remains under 100,000 on sluggish manufacturing, construction

Economy

Published: 11 Jul. 2024, 15:28

Job growth in June remains under 100,000 on sluggish manufacturing, construction

A job fair is crowded with job seekers in Seoul on July 3, 2024. [YONHAP]

Korea added fewer than 100,000 jobs for the second consecutive month in June due to the slowing growth of manufacturing jobs and the weak construction industry, data showed Wednesday.

The number of employed people came to 28.91 million last month, up 96,000 from a year earlier, according to the data compiled by Statistics Korea.

In May, 80,000 new jobs were added on year, the fewest since February 2021, when the country shed 473,000 positions amid the Covid-19 pandemic.

In both January and February, the monthly job additions surpassed 300,000, but the figure fell to 173,000 in March before rising to 261,000 new jobs in April.

"Hot weather and other temporary factors have affected the job growth. We also saw a larger fall in new hiring in the construction sector and in the number of self-employed people," Finance Minister Choi Sang-mok said during a meeting of economy-related ministers.

The weak employment market came as the number of jobs for those aged 15-29 fell by 149,000.

People in their 40s also had 106,000 fewer positions last month.

Jobs for those aged 60 and older, however, rose by 258,000 on year, and expanded by 91,000 and 2,000 for those for those in their 30s and 50s, respectively.

By sector, manufacturing gained 9,000 more jobs in June, the seventh on-year increase, on rising exports. However, the growth has slowed down from 100,000 in April and 38,000 in May, as the computer and electronics parts fields shed a larger number of jobs, according to the agency.

Jobs in the health and welfare sector advanced 4.2 percent on year, or 120,000, and new hiring in the hospitality sector went up 2 percent, or 47,000.

But 66,000 jobs were lost in the construction sector in June amid poor industry performances and the unusually hot weather.

The wholesale and retail sector also shed 51,000 jobs, the fourth consecutive fall.

The employment rate of people aged 15-64 remained unchanged at 69.9 percent, while the jobless rate rose 0.2 percentage points to 2.9 percent.

The number of economically inactive people went up 21,000 on year to 15.79 million last month, marking the first rise in 40 months, the data showed.

"The government will closely monitor the job market situation and make efforts to boost domestic demand. We will come up with tailored, timely measures to create more jobs," Choi said.

Yonhap