Manufacturing-led Employment Slump Continues... Jobs Per Job Seeker Lowest Since IMF Crisis

Job Vacancy Ratio on 'Goyong24' Hits 0.44, Lowest in 27 Years... New Unemployment Benefit Applications Decrease

 [Provided by Ministry of Employment and Labor. Reproduction and Database prohibited]

The slump in the labor market, primarily led by the manufacturing sector, is persisting.

The number of job openings per job seeker on 'Goyong24' as of August was the lowest in 27 years, since the immediate aftermath of the International Monetary Fund (IMF) foreign exchange crisis in 1998.

According to the 'Labor Market Trends Based on Employment Administration Statistics' released by the Ministry of Employment and Labor on the 8th, new job openings in August through the integrated employment service platform 'Goyong24' decreased by 27,000 (15%) to 155,000 compared to the same month last year.

New job seeker registrations on Goyong24 increased by 14,000 (4.1%) to 352,000 last month.

The job vacancy ratio, which represents the number of job openings per job seeker, was recorded at 0.44. This is a decline from 0.54 in the same month last year and the lowest figure for August since August 1998 (0.26).

However, the Ministry of Employment and Labor expressed a positive outlook for the job market, noting that the job vacancy ratio has been gradually increasing since hitting 0.28 in January of this year.

"The manufacturing sector's job openings decreased by 16,000, accounting for 59% of the total decline in job openings, indicating a difficult employment situation in manufacturing," explained Chun Gyeong-gi, head of the Future Employment Analysis Division at the Ministry of Employment and Labor. "Job openings in the construction and wholesale and retail sectors also decreased."

As of the end of August, the number of regular employees insured under employment insurance was 15,627,000, an increase of 182,000 (1.2%) compared to the same month last year.

While the pace of increase has been slowing since 2022, the increase has been maintained in the 180,000 range for the past five consecutive months this year.

By industry, the service sector saw a robust increase of 209,000 insured individuals, while the manufacturing and construction sectors saw decreases of 10,000 and 18,000 insured individuals, respectively.

The decline in manufacturing is attributed to factors such as sluggish exports and economic downturns, while the construction sector's decrease is largely due to the industry's recession.

The number of insured individuals in the manufacturing sector was 3,845,000. While there were increases in automotive, pharmaceuticals, food products, and chemical products, there were decreases in metal processing, textiles, machinery, rubber · plastics, and primary metals.

Excluding the increase in mandatory foreign worker enrollment under the Employment Permit System, there was a decrease of 28,000 individuals in the manufacturing sector.

Specifically in manufacturing, the combined effect of an increasing decline in domestic workers and a slowing increase in foreign workers led to an expanded overall decrease.

The number of insured individuals in the construction sector was 749,000, showing a downward trend for 25 consecutive months, primarily in general construction.

In the service sector, the number of insured individuals reached 10,884,000, with increases continuing in most industries, especially in healthcare and welfare.

The number of male insured individuals increased by 40,000 to 8,594,000 compared to the same month last year. The number of female insured individuals increased by 142,000 to 7,033,000. By age group, there were increases in the 30s (up 75,000), 50s (up 47,000), and 60s and over (up 182,000), while decreases were seen in those under 29 (down 92,000) and in their 40s (down 30,000), attributed to population decline and other factors.

New applications for unemployment benefits (job seeker's allowance) in August were 81,000, a decrease of 5,000 (6.3%) compared to the same month last year. The number of individuals receiving unemployment benefits was 638,000, an increase of 12,000 (2%) compared to the same month last year.

The total amount paid out in unemployment benefits was 10.329 trillion won, an increase of 7.4 billion won (0.7%).

"The decrease in new applications for unemployment benefits is a positive sign, indicating a reduction in involuntary job losses and a moderation of employment adjustments," said Director Chun. "If this trend continues, unemployment benefit indicators are expected to improve in the second half of the year, with the possibility of the total payout falling below 1 trillion won in September."