Employment in Mar. up by 193,000; sharp decline in construction and manufacturing

The Korean labor market is holding steady with employment expanding in March, growing by almost 200-thousand from a year ago, but that expansion remains uneven.

Moon Ji-young explains.

South Korea’s job market saw robust growth in March, but challenges persist, particularly in the construction and manufacturing sectors, along with youth employment.

According to Statistics Korea’s employment report released on Wednesday, the number of employed people aged 15 or older reached almost 28-point-6 million in March, marking a year-on-year increase of 193-thousand.

This gain marks the third consecutive month of growth.

By industry, the health and social welfare sector led the job gains, followed by public administration, defense, and social security, as well as the finance field.

However, construction saw the largest year-on-year drop in jobs since data collection began in 2013, marking a continuous decline for eleven consecutive months.

The manufacturing sector also recorded its most significant decline since November 2020, reflecting a ninth straight month of falls in employment.

Some experts forecast that manufacturing, the backbone of the domestic economy, could see a further decline in jobs this year,

as export growth slows due to a potential trade war triggered by U.S. tariffs.

"Due to the shock from tariffs, our product exports may decline, leading to a faster reduction in job opportunities. Since most of what we sell consists of manufactured goods, this could result in a reduction of decent jobs in the sector."

By age group, employment for those aged 60 years and older primarily led the job growth, adding 365-thousand year-on-year. In contrast, the number of employed individuals aged 15 to 29 dropped by 206-thousand.

The employment rate for young adults stood at 44.5 percent, marking the lowest monthly record for any March since 2021.

With this latest data, Finance Minister Choi Sang-mok expressed concerns regarding sluggish job growth,

particularly in export-driven industries such as manufacturing, during an economic officials' meeting on Wednesday.

To address the volatility in the trade market, the government has committed to a supplementary budget of 10 trillion won, or roughly 6.7 billion dollars.

Moon Ji-young, Arirang News.