S. Korea's job market stumbles: December job decline marks weak end to 2024

Employment here in Korea in 2024 rose by less than half the size of its growth in 2023.

Our correspondent Moon Hye-ryeon tells us why.

South Korea's job market saw a sharp decline in growth last year, with December marking the first employment figure decrease in more than three years amid political instability in the country.

According to data released by Statistics Korea on Wednesday, the number of people in employment in 2024 increased by just 159-thousand compared to the previous year, reaching just under 28-point-6 million in total.

This figure is less than half of the 327-thousand jobs added in 2023, highlighting a significant slowdown for the labor market.

It also marks the smallest annual increase in employment since 2020, when the COVID-19 pandemic led to job losses.

Job growth rebounded in 2021 and surged in 2022 to mark the biggest gain in 22 years – before declining in 2023 and again in 2024.

The construction sector saw the largest decline, losing 49-thousand jobs – the steepest drop on record.

Employment in wholesale and retail, as well as in manufacturing, also decreased.

By age, employment growth was concentrated among older workers in 2024, with 266-thousand jobs added for those aged 60 and above.

Meanwhile, the number of employed people in their twenties and forties fell sharply.

In December alone, the number of those in employment fell by 52-thousand, which marked the first decline in more than three years.

A spokesperson from the agency commented on whether these figures are reflective of weakened consumer demand due to the political instability following the December 3rd martial law declaration.

"It can be said that sectors like wholesale and retail, transportation and warehousing, and accommodation and food services may have been influenced to some extent by psychological factors, showing a slowdown in these industries."

With these latest figures, the government pledged to actively support the recovery of domestic demand and job creation through rapid execution of livelihood and economic support projects including job initiatives in the first half of the year.

This came during a ministerial economic meeting headed by the country's Finance Minister on Wednesday – who went on to further urge all ministries to act as "dedicated employment departments" and prepare tailored job support measures for vulnerable citizens.

Despite the slowdown, South Korea's employment rate for those aged 15 and older reached 62-point-7 percent, the highest since records began.

Moon Hye-ryeon, Arirang News.