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Photo = Yonhap News Agency.

Last month, the number of employed people declined for the first time in 17 months. Analysts attribute the drop largely to a sharp reduction in manufacturing jobs due to the impact of the Middle East war. Youth employment also fell by more than 250,000, continuing a weak trend.

According to the “May Employment Trends” released by the National Data Office on June 11, the number of employed persons aged 15 and over stood at 29.12 million, down 40,000 from the same period last year. This was the first decline since December 2024 (‑52,000).

The employment rate for those aged 15 and over was 63.3%, down 0.5 percentage points year‑on‑year. The drop was the steepest in five years and three months, since February 2021 (‑1.4 percentage points).

By industry, manufacturing employment fell by 140,000, marking 23 consecutive months of decline. The decrease was more than double that of April and the largest since February 2019, seven years and three months ago. Rising oil prices and export disruptions caused by the Middle East war were cited as key factors.

Bin Hyun‑jun, Director of the Social Statistics Bureau at the Data Office, said: “The decline in food and automobile sectors has widened. Semiconductors account for only a small portion of employment.”

Agriculture, forestry and fisheries lost 121,000 jobs, while professional, scientific and technical services fell by 89,000.

Youth employment (ages 15–29) dropped by 255,000 compared to a year earlier, the largest decline since January 2021, when COVID‑19 had a major impact. The Data Office explained that the increase in experienced and rolling recruitment has contributed to the downward trend in youth employment.

The number of unemployed rose by 25,000 to 878,000, with the unemployment rate climbing 0.1 percentage points to 2.9%. The economically inactive population increased by 264,000, including 47,000 more people classified as “resting.”

                                                                                                              Lee Ji‑hoon