Korea's job market grows again, but construction sector plunges

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Korea's job market grows again, but construction sector plunges

Published: 11 Sep. 2024, 11:36 Updated: 11 Sep. 2024, 15:28

People consult job experts at a job fair. [NEWS1]

Korea's job market continued to expand in August, with the number of employed people reaching 28.8 million, an increase of 123,000 compared to the same period last year, marking the second consecutive month of job growth.

However, the construction sector experienced a significant decline in employment, with the largest drop ever recorded amid an industry slowdown and an extreme heat wave.

In July, the monthly job additions bounced back to over 100,000 for the first time in three months to come to 172,000.

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

But the job growth remained relatively weak as the country added more than 300,000 new jobs in the first two months of 2024.

August's job growth was led by more positions for older adults.

Jobs for those aged 60 and older rose by 231,000 on year, and those for people in their 30s and 50s climbed 99,000 and 3,000, respectively.

But those in their 20s had 124,000 fewer jobs last month, and people in their 40s also saw jobs decline by 68,000 on year.

By sector, new hiring in the information and communications field gained 9.7 percent, or 101,000, on year, and jobs in the science and technology service sector went up 7 percent, or 94,000 positions.

Jobs in the health and social welfare sector inched up 2.2 percent on year, or 63,000.

But the manufacturing sector shed 35,000 jobs to have 4.43 million jobs in August, extending the losing streak to a second month.

Students line up at a job fair. [NEWS1]

Jobs in the construction sector fell by 3.9 percent, or 84,000 positions, marking the largest on-year decline since 2013, when the agency began compiling relevant data.

The construction sector has lost jobs for four months in a row.

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

"The heat wave appeared to have affected the construction sector and other field work-related segments," an agency official said.

Unfavorable weather conditions also caused the number of workers who took a temporary leave of absence to rise by 185,000 to come to 742,000 in August, the official added.

The employment rate of people aged 15-64 grew 0.2 of a percentage point to 69.8 percent in August.

The employment rate among people aged 15 and older also went up 0.1 percentage point to 63.2 percent, the highest level for any August since the agency began compiling the data in 1982.

The jobless rate fell 0.1 percentage point to 1.9 percent, while the number of economically inactive people went up 48,000 on year to 16.21 million last month, the data showed.

"Despite decent employment figures in general, those in the construction sector, the self-employed and young people are facing difficulties. The government will beef up efforts to create quality jobs and to support those vulnerable classes," First Vice Finance Minister Kim Beom-seok said during a governmentwide employment task force meeting.

The number of people running a business without any employees sank by 64,000 last month, extending the losing streak to a 12th straight month, amid sagging domestic demand, according to the agency.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]