Korea's job growth at 10-month high despite weak youth employment

South Korea’s job increases rose for a second straight month to a 10-month high in January thanks to higher employment of the older, although youth jobs fell for 15 months in a row amid the falling population, a key risk to long-term growth in Asia’s fourth-largest economy.

The number of employed rose 380,000 last month from a year earlier, the largest growth since March 2023, according to data released from Statistics Korea on Friday.

The payroll gains were mainly led by jobs taken by those in their 60s and above with a 350,000 on-year increase as the government hired 747,000, hired 28,000 more than its target, through its job creation project, which is mainly for older people.

The employment of those aged 15 to 29 declined by 85,000 from a year earlier, however, as the population of the age group fell by 218,000, the data showed.

“The number of employed youth fell due to the decreasing population but the trend is favorable with their employment rate up for three straight months,” the Ministry of Economy and Finance said in a statement released after the job data.

The employment rate for the age group rose 0.2 percentage point to 46.3% in January from a year earlier after growing 0.2 percentage point, and 0.1 percentage point, respectively, in November and December 2023.

HEALTHCARE, SOCIAL WELFARE SERVICE JOBS LEAD

By industry, the healthcare and social welfare service sector, where older people are mainly employed, added 104,000 jobs as demand for care increased.

The construction sector increased by 73,000 jobs on warmer weather although the industry remained sluggish, while payrolls in the professional, science and technology service sector reported a similar increase.

Manufacturers added 20,000 jobs in January after increasing 10,000 payrolls in the prior month, although the outlook for industries remained mixed.

“Payrolls in the auto and medical industries are rising while jobs in the electronics and chemical industries are falling, although the trend is easing,” Seo Woon-joo, a director at Statistics Korea told reporters.

South Korea’s exports rose 18% in January thanks to a rebound in semiconductor shipments, strong overseas sales of automobiles and healthy demand from China, government data showed earlier this month.

Write to Sang-Yong Park at yourpencil@hankyung.com
 

Jongwoo Cheon edited this article.