Last month, South Korea’s job figures appeared to be good, with an increase in the number of employed people compared to the year before. However, a closer look at the data reveals a different story.
According to Statistics Korea, the country added 268,000 new jobs in August, bringing the total of employed people to 28.67 million. The number of unemployed people decreased by 41,000, resulting in a jobless rate of 2 percent. But this does not tell the whole story.
The manufacturing sector saw a decrease of 69,000 new jobs in August, the steepest decline since April. This is linked to sluggish exports and a reduction in production, showing that the sector is still suffering. The construction sector was also down, with 1,000 fewer new jobs than the year before.
In addition, the growth of new jobs was mainly in those aged 60 and above, while the younger generation and those in their 40s saw a decline in August. This is concerning, as it suggests a mismatch between the new jobs available and those who need them, as well as a lack of high-quality jobs.
Temporary workers also increased by over 10 percent, indicating an unstable employment situation. This is further compounded by the fact that six in ten companies in the top 500 ranking reportedly do not have plans to recruit new workers in the second half of this year.
The government has said it will address workforce imbalance, and to do this, policymakers should consider the importance of creating sustainable, high-quality jobs for all age groups, as well as removing regulations that prevent new job growth.