The number of employed people in South Korea rose by more than 110,000 last month, though the pace of gains slowed from August. The slowdown came as employment in lodging and restaurants posted its steepest drop since February 2021, during the COVID-19 pandemic. Manufacturing employment turned higher for the first time in 27 months, while the number of employed young people fell for a 47th consecutive month.
The number of employed people aged 15 and over stood at 29.266 million last month, up 113,000 from a year earlier, according to the September 2026 employment trends report released by the Ministry of Data and Statistics on the 16th. The pace of gains had widened from 63,000 in June to 108,000 in July and 184,000 in August before slowing again in September.
The employment rate for those aged 15 to 64 rose 0.2 percentage points from a year earlier to 70.6%, the highest for any September since the statistics began in 1989. The overall employment rate for those aged 15 and over, by contrast, fell 0.2 percentage points to 63.5%. The decline reflects job gains that failed to keep pace with growth in the population aged 65 and over.
The overall unemployment rate fell 0.1 percentage point from a year earlier to 2.0%, the lowest for any September since the data series began in June 1999. The number of unemployed people fell by 34,000 to 600,000.
By industry, employment in lodging and restaurants fell by 97,000, the sharpest decline since February 2021, when it dropped by 232,000. The ministry attributed the fall in part to a base effect, after consumption coupons distributed last year lifted hiring in the sector. Employment also fell in agriculture, forestry and fisheries, down 94,000, and in education services, down 53,000.
Health and social welfare services, by contrast, added 207,000 jobs, supported by demand for care services and an expansion of jobs for older adults. Transportation and warehousing added 54,000 jobs, and finance and insurance added 32,000.
Manufacturing employment rose by 16,000, turning higher for the first time in 27 months, or since June 2024. Jobs declined in automobiles and textiles but increased in chemicals, fabricated metal products and other transportation equipment.
Weakness in youth employment continued. The number of employed people aged 15 to 29 fell by 147,000 from a year earlier, a 47th straight monthly decline. Their employment rate fell 1.1 percentage points to 44.0%, a 29th consecutive month of decline. Their unemployment rate rose 0.6 percentage points to 5.4%.
Employment indicators for those aged 15 to 34, published for the first time this month, also deteriorated. The number of employed people in that age group fell by 98,000, and their employment rate fell 0.4 percentage points to 56.1%. Their unemployment rate rose 0.1 percentage point to 4.2%. The ministry said the smaller deterioration compared with the existing 15-to-29 measure reflects the inclusion of people in their early 30s, whose employment is relatively stable.