October Sees Increase of 190,000 Jobs, Matching This Year’s Average... Youth Employment Rate Continues to Decline

[Financial News] The number of employed people in October increased by 190,000 compared to a year ago, matching the average monthly growth seen from January to October this year. In September, employment rose by more than 300,000, boosted by the Consumption Coupon program, but in October, the number fell compared to the previous month due to a decrease in daily workers during the Chuseok holiday. The youth employment rate declined for the 18th consecutive month.
According to the Ministry of Data and Statistics’ 'October Employment Trends' released on the 12th, the number of employed people last month reached 29.04 million, an increase of 193,000 from the same month last year. Except for May (245,000) and September (312,000), the monthly increase in employment this year has remained in the 100,000 range. Notably, the September figure was the largest increase in 19 months since February last year (329,000), mainly due to the impact of the Consumption Coupon program.
The Ministry of Economy and Finance stated that the drop in employment from over 300,000 in September to 190,000 in October was not due to the end of the Consumption Coupon program. The upward trend in service sectors related to the program continues. Compared to the same month last year: wholesale and retail employment rose from 28,000 in September to 46,000 in October; accommodation and food services increased from 26,000 to 22,000; and arts and leisure jobs grew from 75,000 to 70,000, showing a continued upward trend.
The Ministry of Economy and Finance attributed the month-on-month decrease in employment to the seven-day Chuseok holiday in October, which led to a reduction in daily workers. By employment status, the number of regular employees increased by 286,000 and temporary workers by 79,000, but daily workers decreased by 55,000. Employment in the construction sector, which is closely linked to daily workers, fell by 123,000, marking the 18th consecutive month of decline.
Youth employment, in particular, continued to struggle. By age group, only those aged 60 and above (334,000) and those in their 30s (80,000) saw increases in employment in October, while all other age groups experienced declines. The youth group (ages 15–29) saw the largest decrease, with employment dropping by 163,000.
According to the Organisation for Economic Co-operation and Development (OECD) standard (ages 15–64), the employment rate reached a record high of 70.1%. However, the youth employment rate fell by 1.0 percentage point from a year earlier to 44.6%, marking the 18th consecutive month of decline since May last year.
Among the economically inactive population, the number of youth classified as 'taking a break' was 409,000, a decrease of 9,000, while the number of people in their 30s in this category rose by 24,000 to 334,000, the highest since statistics began.
Gong Misuk, Director of Social Statistics, explained, “Hiring focused on experienced workers and rolling recruitment are working against young job seekers. The sluggish manufacturing sector, where many young people are employed, also had an impact.” She added, “While employment and labor force participation rates for those in their 30s remain generally strong, the number of people classified as ‘taking a break’ among the economically inactive population is increasing, even as those citing childcare or household duties are decreasing.”

junjun@fnnews.com Choi Yong-jun Reporter