The government noted that the annual increase in the number of employed people last year was the smallest in four years, indicating a deterioration in employment indicators. However, the employment rate is at an all-time high, and the youth employment rate is also at a satisfactory level. However, despite these numerical indicators, the employment situation felt by the youth has been reported as difficult.
The Ministry of Employment and Labor held the '2024 Employment Trends Briefing' on the 16th.
The briefing was an opportunity to share the characteristics of employment trends analyzed by the ministry in relation to the employment trends for December 2024 and annual figures announced by the Statistics Korea a day earlier, on the 15th.
The annual increase in the number of employed people last year announced by the Statistics Korea was 159,000 (0.6%), the smallest in four years since 2020. Additionally, the number of employed people in December last year was 28,041,000, a decrease of 52,000 (0.2%) compared to the previous year. This is the first time since February 2021 that the number of employed people has decreased compared to the previous year.
In response, the ministry stated that last year's employment rate was 62.7%, the highest level ever. The youth employment rate was 46.1%, which is the third highest on record. The youth unemployment rate stands at 5.9%, the lowest ever. Deputy Minister Lee Jeong-han said, "When reading domestic labor market indicators, the employment rate must also be carefully considered." This indicates the necessity to look at how many people are truly employed, in addition to the increase in the number of employed people.
However, the ministry pointed out that, despite these indicators, the employment situation felt by young people is not easy. Due to the deepening wage gap between large enterprises and small and medium-sized enterprises, the ratio of youth hoping to work in large companies has increased. However, large enterprises tend to hire experienced workers instead of conducting open recruitment for new hires.
The number of youth categorized as 'resting', meaning they are neither seeking jobs nor working, has remained in the 400,000s since 2021. Among them, 35.2% cited "difficulty in finding the desired job" as the reason for their status. Additionally, it takes an average of 11.5 months to find a job after graduation.
Deputy Minister Lee mentioned, "There is a mix of youth who are staying in the non-economically active population because getting a job is difficult and youth who are entering the resting category during job transitions," adding, "Policies must be formulated considering this situation."
In terms of gender-specific employment rate indicators, while the employment rate for women is increasing, it still falls short of the average of the Organisation for Economic Co-operation and Development (OECD). Last year's female employment rate was 54.7%, an increase of 0.6 percentage points compared to the previous year. In contrast, South Korea's gender wage gap was 29.3% as of 2023, more than double the OECD average of 11.4%. The gender wage gap is the lowest among OECD countries.
The employment rate for older individuals continues to rise, but in qualitative terms, it remains low compared to other countries. Unlike major overseas countries which are distributed across various industries, in Korea, it is mainly concentrated in health and welfare and agriculture, forestry, and fisheries. Deputy Minister Lee noted, "As the demand for continued work among the second baby boomer generation has begun, effective human resource utilization in the ultra-aging era is increasingly essential."
The ministry plans to announce employment measures targeting major groups such as youth this month and older individuals in February. Additionally, there are plans to hold a job fair in March in conjunction with relevant ministries.