The increase in the number of employed individuals in April recorded a not bad figure of about 190,000; however, the temperature differences by industry were distinct. The number of employed individuals in the agricultural, forestry and fishing sector recorded the largest decrease in 9 years and 5 months, while the number of employed individuals in the construction and manufacturing sectors continued to decline compared to the same period last year for 12 months and 10 months, respectively.
In the previous month, youth employment indicators (ages 15-29) were sluggish. The number of employed youth decreased by 174,000, and the unemployment rate increased by 0.5 percentage points. Although the government continues to implement youth job policies, the number of youth individuals who are inactive has been rising for 12 consecutive months.
◇ With climate change leading to wildfires… the number of employed individuals in the agricultural, forestry, and fishing sector sees the largest decrease in 9 years and 5 months
According to the 'April Employment Trends' announced by the Statistics Korea on the 14th, the number of employed individuals aged 15 and older reached 28,887,000, an increase of 194,000 compared to the same period last year. By industry, while the number of employed individuals in the service sector recorded an increase for 50 consecutive months, the decrease in the number of employed individuals in sectors such as construction, agriculture, forestry, and fishing significantly exceeded 100,000.
Looking specifically, the number of employed individuals in the agricultural, forestry, and fishing sector decreased by 134,000 last month. This is the largest decrease since November 2015 (-172,000). The government reports that factors such as unusual weather, heavy snowfall warnings, wildfires in the North Gyeongsang Province, and the structural decline in agricultural and fishing households have been impacting the sectors.
Jang Joo-seong, head of the Labor Policy Division at the Ministry of Economy and Finance, said, 'Last month, the lowest temperature dropped to 2 degrees, and with significant snowfall, the number of employed individuals in the agricultural, forestry, and fishing sector greatly decreased,' and noted, 'There was also some impact from the wildfires in North Gyeongsang Province.'
Last month, the number of employed individuals in the manufacturing sector also decreased by 124,000. Despite an increase in exports, it has continued to decline for 10 months. Delayed domestic recovery, tariffs, and base effects have been acting in combination. Specifically, the number of employed individuals in sectors such as electronic components and computers has decreased.
The number of employed individuals in the manufacturing sector is in a situation where it is difficult to predict the upcoming trend. The Ministry of Economy and Finance believes that although the number of manufacturing production has increased for two consecutive months, which may reduce the decrease in the number of employed individuals in the manufacturing sector, it does not rule out the possibility that employment in manufacturing may worsen further due to the tariffs from Trump. Acting Minister Kim Beom-suk also stated that 'As the sluggish employment in manufacturing is expanding, there is concern that the sluggish employment in the export sector due to changes in the trade environment may subsequently affect related industries and small businesses.'
The number of employed individuals in the construction sector decreased by 150,000 compared to the same month last year. Economic downturn and a decrease in orders have reduced the supply of dwellings, leading to prolonged employment distress. However, the decrease was less than last month (-185,000). The government hopes for an increase in apartment occupancy in the second half of the year while planning to revitalize the construction sector to support job creation.
◇ The number of inactive youth individuals has increased for 12 consecutive months… job mismatch persists
Changes in the number of employed individuals by age group were also stark. Last month, the number of employed individuals aged 60 and older increased by 340,000, and those in their 30s by 93,000; however, others decreased. In particular, the number of employed individuals in their 20s decreased by 179,000, showing a significant drop. Last month's unemployment rate (2.9%) fell by 0.1 percentage points compared to April of the previous year, but the youth unemployment rate rose by 0.5 percentage points.
Last month, the number of inactive individuals increased by 45,000 compared to April of the previous year. Among them, the number of inactive youth individuals (ages 15-29) increased by 15,000, marking an increase for 12 consecutive months. The government has allocated a budget of 2.5 trillion won for youth job policy initiatives this year, but there is an analysis that the effect is minimal.
Go Mi-sook, head of the Social Statistics Division at the Statistics Korea, stated, 'Although the number of economically inactive individuals due to low birth rates and childcare and housework is decreasing, the trend of inactive youth due to job mismatch is increasing.'
In fact, according to a 'Job Perception Survey' released last month by The Federation of Korean Industries, 76.4% of 500 unemployed youth (ages 19-34) responded that 'there are not enough quality jobs.' The conditions for quality jobs that youth consider are primarily 'salary levels (31.8%),' followed by job stability (17.9%) and work-life balance (17.4%).
The deterioration of youth employment can lead to a decrease in marriages and births as well as issues of isolation and reclusiveness. According to the Office for Government Policy Coordination's 'Survey on Youth Living Conditions,' the percentage of isolated and reclusive youth last year was 5.2%, which has more than doubled compared to two years ago.
The government is allocating a youth job budget of 2.5 trillion won this year to provide opportunities for internships and artificial intelligence education, but improvements in youth employment indicators remain elusive. The government stated, "To ensure employment stability for vulnerable groups, including youth, we plan to implement and manage youth job projects such as the Youth Employment All-Care Platform, job experiences, and vocational training without any issues, while continuously discovering and promoting additional tasks."