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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, June 9 – South Korea’s labor market conditions worsened significantly in May, with the number of job openings per job seeker falling to 0.37, the lowest level for the month of May since the aftermath of the 1998 Asian financial crisis, according to data released by the Ministry of Employment and Labor on Sunday.
The ministry’s latest report, titled “Labor Market Trends Based on Employment Administration Statistics,” revealed that new job openings registered through the country’s integrated employment service platform, Employment 24, totaled 141,000, marking a 24.8% decline (down 46,000) from the same month last year. This marks the 27th consecutive month of year-over-year decline since March 2022.
In contrast, the number of new job seekers reached 376,000, increasing 2.6% (up 10,000) year-over-year. As a result, the job openings-to-applicants ratio (OAR), or “recruitment rate,” fell to 0.37, reflecting one of the most challenging job markets in nearly three decades.
The number of regular subscribers to employment insurance – excluding self-employed and freelance workers – stood at 15.58 million at the end of May, up 187,000 or 1.2% year-on-year. However, this is the smallest year-over-year gain in five years, dating back to May 2020.
By industry:
Manufacturing saw only a marginal increase, with insured workers totaling 3.85 million, up 0.1%. While sectors such as food, auto, chemical, and other transport equipment gained, others including petroleum products, metal processing, rubber/plastics, and machinery posted declines.
Notably, after excluding foreign worker contributions via the Employment Permit System, domestic manufacturing employment shrank by 16,000, extending the 20-month streak of decline.
Service sector employment rose 1.9% to 10.82 million, led by gains in healthcare and welfare, business services, professional and scientific fields, accommodation and food services, and logistics.
Construction sector employment fell to 754,000, marking a 22-month consecutive decline.
In terms of age demographics, workers aged 60 and above saw the largest increase with 190,000 new employment insurance subscribers. The 30s and 50s age groups rose by 73,000 and 54,000, respectively. However, employment among those aged 29 and below and in their 40s declined by 93,000 and 37,000, respectively, attributed to demographic contraction.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
