Korea's manufacturing jobs rise for first time in 27 months

Overall job growth slows as youth employment remains weak

South Korea's manufacturing employment rose for the first time in 27 months in September despite a slowdown in overall job growth, government data showed Friday.

Manufacturers employed 4.36 million people last month, up 16,000 from a year earlier, according to the Ministry of Data and Statistics. The increase was the first since June 2024, ending 26 consecutive months of job losses. The sector had shed 38,000 jobs in August and 68,000 in July.

"Employment fell in automobiles and textiles, but increases in chemicals, fabricated metal products and other transport equipment pushed manufacturing employment back into growth," Bin Hyun-jun, the agency's director general for social statistics, said.

The Ministry of Finance and Economy said sustained export strength was gradually feeding through to employment, supported by favorable business sentiment.

Across the economy, the number of employed people rose 113,000 from a year earlier to 29.27 million. That marked the third consecutive month of gains exceeding 100,000, although the increase narrowed from 184,000 in August.

The ministry attributed part of the slowdown to a high comparison base following a 312,000 increase in employment in September 2025, when government consumption coupons supported hiring.

On a seasonally adjusted basis, employment rose 40,000 from August, extending its monthly growth streak to four months.

Weakness persisted in consumer-facing industries and construction. Accommodation and food services lost 97,000 jobs, the steepest decline since February 2021, while construction shed 48,000.

Health and social welfare services added 207,000 jobs, leading overall gains.

"Job gains in health and welfare services and transportation linked to online shopping helped offset losses in other sectors, leaving the slowdown in overall employment growth smaller than expected," Bin said.

Youth employment remained weak. The number of employed people aged 15 to 29 fell 147,000, extending the decline to 47 consecutive months. The youth employment rate fell 1.1 percentage points to 44 percent, declining for a 29th straight month, while the youth unemployment rate rose 0.6 percentage point to 5.4 percent, the highest for any September in four years.

The employment rate for people aged 15 to 64 rose 0.2 percentage point to 70.6 percent, a September record. The overall unemployment rate fell 0.1 percentage point to 2 percent.

"Renewed tensions in the Middle East may pose downside risks to employment," a finance ministry official said. "We will draw up a national jobs initiative that includes job creation in both the private and public sectors."