The employment rate in the first half of the year recorded the highest ever for the first half, and last month, the number of employed people increased by 183,000, continuing a six-month streak of double-digit growth. However, traditional industries such as manufacturing, construction, and agriculture remain mired in deep stagnation. Employment in manufacturing has decreased for 12 consecutive months due to sluggish domestic demand and tariff pressures from the U.S., and the number of employed in agriculture and forestry has declined at the largest pace in 10 years.
According to the 'Employment trends for June 2025' released by the Statistics Korea on 16th, the number of employed individuals aged 15 and older reached 29,091,000 last month, an increase of 183,000 compared to the same month last year. The employment rate for those aged 15 and older is 63.6%, a rise of 0.1 percentage points, while the employment rate for those aged 15 to 64 is 70.3%, an increase of 0.4 percentage points, both recording the highest levels for June.
The increase in employment among the elderly and the robust job growth in the service sector drove the increase in the number of employed individuals. Employment in health and social welfare services rose by 216,000, and in professional, scientific, and technical services, it increased by 102,000. Employment in the real estate sector also increased by 6,000. The Statistics Korea analyzed this as a result of the recovery in housing transactions centered in the metropolitan area.
Looking at the entire first half of this year, the number of employed individuals increased by 181,000 compared to the same period last year. The employment rate for those aged 15 and older is 62.6%, and for those aged 15 to 64, it is 69.6%, making them the highest ever for the first half.
However, there continue to be shocks in key sectors. The number of employed in manufacturing, regarded as quality jobs, has decreased to 4,414,000, down by 83,000, marking 12 consecutive months of decline since July of last year. Amid the continued poor employment in domestic-related manufacturing, there are analyses that employment in the automobile manufacturing sector has also begun to take a hit recently.
Director Jang Joo-sung from the Ministry of Economy and Finance noted, 'If domestic demand recovers through the execution of the first and second supplementary budgets, it will be a positive factor for manufacturing employment,' but he also pointed out that 'export manufacturing, including the automobile industry, is affected by the risks of trade.'
Employment in the construction sector also decreased by 97,000. The decline in construction employment has continued for 14 months.
The number of employed in agriculture and forestry decreased by 141,000. This is the largest drop in about ten years since November 2015 (a decrease of 172,000). It is analyzed that the acceleration of aging, unusual climate, and the under-representation of foreign workers such as seasonal workers in sample surveys have affected this.
Youth employment continues to be sluggish. The employment rate for those aged 15 to 29 is 45.6%, down by 1.0 percentage points compared to the same month last year, marking a 14-month continuous decline. Director Jang explained, 'The combination of economic sluggishness and the weakening job creation ability of our economy due to the structural transformation of industries, as well as mismatches between corporations that value experienced workers and youth who prefer work-life balance and metropolitan employment, and the retention of the elderly in the labor market are acting together.'
He added, 'Creating many jobs in advanced industries is the fundamental solution,' stating, 'There is a need to expand incentives for corporations that employ youth, strengthen settlement support to attract local jobs, and come up with creative ideas for coexistence of jobs with the middle-aged and elderly.'
Looking at the employment figures by age, there was an increase of 348,000 in those over 60, and 116,000 in those in their 30s, but declines were seen in the 'employment middle age' groups such as those in their 50s (53,000), 40s (55,000), and 20s (152,000).
An official from the Ministry of Economy and Finance stated, 'The decrease in the employment rates of young people can mainly be attributed to the decline in employment in manufacturing and accommodation and food services,' also noting, 'The 50s have been affected by the decrease in employment in construction, agriculture and forestry, and wholesale and retail sectors.'
Due to sluggish domestic demand, a cold wind is blowing in self-employment as well. Looking at non-wage earners, self-employed individuals with employees decreased by 21,000 for nine consecutive months. The number of self-employed individuals without employees also declined by 45,000. Unpaid family workers also decreased by 64,000.
The number of unemployed individuals is 825,000, down by 32,000. The unemployment rate is 2.8%, down by 0.1 percentage points. The unemployment rate for men remained the same at 3.0% compared to the previous year, while for women, it fell to 2.5%, a decrease of 0.3 percentage points.
The government believes that the annual number of employed this year is likely to exceed the initial projections. The government's outlook at the beginning of the year for the increase in the annual number of employed is 120,000. It plans to reflect this in the new government's economic policy direction to be announced soon.
While executing the first and second supplementary budgets will positively affect employment if domestic demand recovers, continuous domestic sluggishness and the uncertainties of U.S. tariff policies are viewed as risk factors.
The Ministry of Economy and Finance stated, 'We will quickly implement supplementary projects to revitalize domestic demand and stabilize people's livelihoods, and through fostering advanced industries such as artificial intelligence (AI), we will expand the creation of quality jobs,' adding, 'We will continuously identify key tasks for job stability for vulnerable groups such as youth.'