Construction sector sees largest job crash in 11 years

Economy

Construction sector sees largest job crash in 11 years

Published: 14 Aug. 2024, 18:18

Korea added more than 100,000 jobs in July. [YONHAP]

Jobs in the construction sector in Korea fell by the most in 11 years in July despite the country adding more than 100,000 jobs in the same month, data showed Wednesday.

The figure fell by 3.9 percent, or 81,000 positions, marking the largest on-year decline since 2013. The construction sector has lost jobs for three months in a row. The downward trend is especially significant considering that the country added one of its highest number of jobs in recent months in July.

The decline was due mainly to poor industry performance, the monsoon season and hot weather, according to the agency.

“Despite decent employment figures in general, the construction sector and self-employed people experienced difficulties. The government will devise measures to support the construction sector and other vulnerable people in the job market,” First Vice Minister of Economy and Finance Kim Beom-seok said during a governmentwide employment task force meeting.

The number of employed people came to 28.86 million last month, up 172,000 from a year earlier, according to the data compiled by Statistics Korea, marking the first time in three months that monthly job additions bounced back above 100,000.

In June, 96,000 jobs were added on-year from 80,000 new positions the previous month. The May tally was its lowest since February 2021.

Monthly job additions surpassed the 300,000 level in January and February but fell to 173,000 in March before rising to 261,000 in April.

The employment of older adults led July's job growth.

Roles for those aged 60 and older rose by 278,000 on year, and those for those in their 30s and 50s climbed 110,000 and 23,000, respectively.

But those aged between 15 and 29 had 149,000 fewer jobs last month, and people in their 40s saw jobs decline by 91,000 on year.

By sector, jobs in health and social welfare increased by 4 percent on year, or 117,000, and new hiring in the information and communications field advanced by 7.8 percent, or 82,000, on year.

The manufacturing sector shed 11,000 jobs in July, ending seven months of on-year job increases.

The employment rate of people aged between 15 and 64 grew 0.2 percentage points to 69.8 percent in July while the jobless rate fell 0.2 percentage points to 2.5 percent.

The employment rate of people aged 15 and older went up 0.1 percentage point to 63.3 percent, the highest level of any July since the agency began compiling the relevant data in July of 1982.

The number of economically inactive people went up 89,000 on year to 15.99 million last month, the data showed.

The number of people running a business of their own, without any employees, sank by 110,000 last month, extending its losing streak to an 11th straight month amid sagging domestic demand, according to the agency.

BY JIN EUN-SOO, YONHAP [jin.eunsoo@joongang.co.kr]