{"id":2207976,"date":"2025-01-15T17:35:27","date_gmt":"2025-01-15T08:35:27","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207976"},"modified":"2025-01-15T17:35:27","modified_gmt":"2025-01-15T08:35:27","slug":"job-market-struggles-highlight-south-koreas-economic-vulnerabilities-in-2025","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/job-market-struggles-highlight-south-koreas-economic-vulnerabilities-in-2025\/","title":{"rendered":"Job market struggles highlight South Korea\u2019s economic vulnerabilities in 2025"},"content":{"rendered":"
South Korea recorded its <\/span>first on-year job loss<\/span><\/a> in nearly four years to close out 2024, reflecting deep-seated challenges in the nation\u2019s labor market that could undermine economic stability in the year ahead.<\/span><\/p>\n December saw a net decline of 52,000 jobs compared to the same month in 2023, contrasting sharply with the 120,000 job additions in November, according to the latest data from Statistics Korea on Wednesday.<\/span><\/p>\n The government agency attributed this decline to the termination of temporary public-sector job programs and weakened employer sentiment in sectors such as construction and retail. Moreover, the figures highlight structural challenges and sectoral imbalances, even as the ROK government has <\/span>prioritized fiscal measures<\/span><\/a> to stabilize employment.<\/span><\/p>\n With industries like construction and retail shedding jobs while health care and social welfare expand, South Korea\u2019s labor market reflects immediate challenges and areas of resilience. Businesses must grapple with the implications of these uneven trends, particularly as fiscal measures seek to bridge the gap between short-term recovery and long-term stability.<\/span><\/p>\n EMPLOYMENT TRENDS AND DATA OVERVIEW<\/b><\/p>\n South Korea\u2019s employment rate for individuals aged 15 to 64 rose to 69.5% last year, the highest since Statistics Korea began compiling data. However, the larger picture shows a gloomier outlook.<\/span><\/p>\n The country added just 159,000 jobs in 2024, representing a modest 0.6% increase year-on-year and the lowest employment growth in three years. The deceleration in job creation highlights a departure from the robust recovery seen in the immediate aftermath of the pandemic. South Korea added 816,000 jobs \u2014 the largest increase since 2000 \u2014 in 2022 and 327,000 in 2023.<\/span><\/p>\n Sectoral disparities were evident. The construction and wholesale and retail sectors saw job losses of 49,000 and 61,000, respectively, while medical and social welfare services gained 83,000 jobs. By demographics, youth employment (15 to 29 years) fell by 124,000, whereas jobs for those aged 60 and older rose by 266,000, reflecting South Korea\u2019s aging population.<\/span><\/p>\n Further, the total non-economically active population increased by 29,000 compared to the previous year, reaching about 16.5 million in 2024. Among this group, individuals categorized as \u201c<\/span>resting<\/span><\/a>\u201d \u2014 neither employed nor actively seeking work \u2014 increased by 179,000.<\/span><\/p>\n