Hiring rebound or base effect? 170,000 new job openings in January, up 25% from a year earlier

On Employment 24, the government’s job-matching platform, the number of new job openings in January rose by about 25% year-on-year, or roughly 34,000 positions. This marked a recovery for the second consecutive month compared with the same period a year earlier. However, as the number of new job seekers also increased by 78,000, or 16.2%, the job openings-to-applicants ratio improved only slightly. Analysts noted that the increase is likely due in part to a base effect from last year, when new job openings dropped sharply.
According to the report "Labor Market Trends Based on Employment Administration Statistics" released by the Ministry of Employment and Labor (MOEL), there were 170,000 new job openings on Employment 24 in January. This represents an increase of 34,000, or 25.4%, from a year earlier.
By industry, new job openings in January showed a broad-based increase. Manufacturing posted 53,000 openings, up 13,000 from January last year. Even the construction sector, which has been facing a hiring slump, recorded 7,000 openings, an increase of 1,000 year-on-year.
In the health and welfare services sector, which has been driving growth in employment insurance subscribers, there were 42,000 new job openings, up 6,000 from the same month a year earlier.
While the increase in new job openings is seen as a positive signal, experts caution that it is still too early to say the market has returned to a "normal" level. The rise is likely largely a base effect compared with January last year, when openings plunged by more than 100,000 from January 2023. New job openings in January 2024 totaled 135,000, down 101,000 from 236,000 in January 2023.
Chun Kyung-gi, head of the Future Employment Analysis Division at MOEL, stated, "In areas such as semiconductor and automobile manufacturing, we are seeing some signs that the job situation is gradually improving," adding, "Job openings are a leading indicator, and while manufacturing jobs are still in a difficult phase, some of the challenges appear to be easing little by little."
He added, "It still seems premature to conclude from these numbers that manufacturing jobs have clearly improved."
Although new job openings increased, the number of new job seekers also rose sharply over the same period, meaning the mismatch between labor supply and demand continues. As a result, the job openings-to-applicants ratio saw only a modest uptick.
New job seekers in January numbered 557,000, an increase of 78,000, or 16.2%, from a year earlier. This translated into a job openings-to-applicants ratio of 0.30, meaning there were 0.30 jobs per job seeker.
Meanwhile, the number of employment insurance subscribers in January was 15,437,000, up 263,000 from a year earlier. This is the first time in 15 months that the increase has exceeded 200,000. As was the case last year, growth is being driven mainly by the health and welfare services sector and older workers, while declines continue in manufacturing, construction, and among younger workers.

jhyuk@fnnews.com Kim Jun-hyuk Reporter