South Korea Employment Falls for First Time in 17 Months

The Statistics Korea reported that South Korea's employment fell by 40,000 jobs in May compared to the previous year, marking the first decline in 17 months. The total number of employed people dropped to 29.12 million, while the unemployment rate rose by 0.1 percentage point to 2.9 percent, up from 2.8 percent in April.

The manufacturing sector saw the steepest contraction since February 2019, losing 140,000 jobs, and the construction industry lost 43,000 positions. Officials attributed these losses to economic uncertainties caused by the prolonged Middle East conflict. While a semiconductor boom occurred, officials noted it was insufficient to offset job losses in the plastics and automobile industries.

Offsetting some of these losses, the health and social welfare services sector added 212,000 jobs, and employment for individuals aged 60 and older grew by 171,000. Additionally, the economically inactive population increased by 264,000 people, including a significant rise in those reporting they were resting.