In the new year, the government has rapidly promoted job projects, resulting in an increase in the number of employed people in January compared to the same month last year.
Due to the conclusion of job projects, the number of employed people in the previous month (December 2024) transitioned to a decline after 46 months, but it has returned to an increase in just one month.
According to the 'January 2025 Employment Trends' released by the Statistics Korea on the 14th, the number of employed people last month was 27,878,000, an increase of 135,000 compared to the same month last year.
The industry sector that saw the most significant increase in employment was health and social welfare services, which increased by 119,000. Additionally, the number of employed people in public administration also rose by 33,000. The increase in the number of jobs in these two sectors related to government-led job projects reached 152,000.
In response, the Ministry of Strategy and Finance noted that 'the increase in employment was due to the resumption of direct job projects' and explained that 'the rise in the number of employed people in the service sector also expanded due to increased purchases of seasonal goods ahead of the Lunar New Year holiday.'
However, employment in the key sectors, particularly construction and manufacturing, is not escaping the harsh impact.
In particular, employment in construction decreased by 169,000 compared to the same month last year, marking the largest decline since the standard industrial classification for construction was changed in 2013.
Employment in manufacturing also fell by 56,000. Employment in manufacturing has seen a consecutive decline for seven months since July last year.
The deterioration of youth employment is also a cause for concern. Last month, the employment rate for the youth (ages 15-29) was 44.8%, down 1.5 percentage points from the same month last year. Particularly, the employment rate for those in their late 20s, a critical age group for employment, was 71.3%, marking a decline of 1.4 percentage points compared to the same month last year.
The number of individuals classified as 'inactive' has increased, particularly among those in their early 20s. The Ministry of Strategy and Finance explained that 'the rise in the number of youth classified as inactive is likely influenced by an increase in short-term and career-based hiring, leading to a higher percentage of responses stating they are 'temporarily inactive' rather than indicating 'job preparation or unemployment.'
The proportion of youth appearing to struggle with job searching, combining 'unemployed + job seeking + inactive,' stood at 13.7%, an increase of 0.9 percentage points compared to the same month last year.
The government anticipates that the effect of declining working-age population will begin to substantially impact employment indicators this year. According to research from the Korea Development Institute (KDI), it is projected that the decrease in the number of employed individuals due to demographic changes will range from a minimum of 12,000 to a maximum of 60,000 starting this year.
The risks to the economy are also increasing, partly due to shifts in U.S. trade policy. Choi Sang-mok, the acting Prime Minister and Minister of Strategy and Finance, stated during a meeting on economic checks held that morning, 'The decline in the working-age population is restricting the increase in the number of employed people, making it challenging for future employment conditions. We will make every effort, in partnership with the private sector, to create at least one more good job.'