S. Korea Adds 113,000 Jobs in September, but Youth Employment Falls for 47th Straight Month

A student looks at job listings at a university career center in Seoul.  South Korea’s labor market is showing a widening divide across age groups and industries. While total employment has continued to grow for four consecutive months, signaling an overall recovery, youth employment has declined for nearly four years, underscoring the persistent weakness in the job market for younger workers. According to the September 2026 Employment Trends report released by the National Data Agency on Oct. 16, the number of employed people reached 29.266 million last month, up 113,000 from a year earlier. The increase was smaller than the 184,000 gain recorded in August, but employment continued to rise by more than 100,000 for a third consecutive month. The employment rate for people aged 15 to 64 stood at 70.6%, the highest level for September since statistics were first compiled. By industry, manufacturing employment increased by 16,000 from a year earlier, supported by strong exports. This marked the first increase in 27 months, since June 2024. Employment also grew in health and social welfare services, which added 207,000 jobs, and transportation and warehousing, which added 54,000, helping drive overall employment growth. By contrast, industries sensitive to domestic demand continued to struggle. Employment in accommodation and food services fell by 97,000, with the decline widening from the previous month. Construction employment dropped by 48,000, extending its decline to 29 consecutive months. Employment also fell in agriculture, forestry and fisheries, down 94,000, and educational services, down 53,000. Youth employment remained particularly weak. The number of employed people aged 15 to 29 fell by 147,000 from a year earlier, marking a 47th consecutive month of decline. The streak is the longest since employment fell for 62 consecutive months from November 2004 to December 2009, during the financial crisis. The youth employment rate dropped 1.1 percentage points to 44.0%, marking its 29th consecutive month of decline. The youth unemployment rate stood at 5.4%, its highest level for September in four years. In contrast, employment among older people rose sharply. The number of employed people aged 65 and older increased by 254,000 from a year earlier, more than twice the overall employment gain. Meanwhile, employment among people aged 15 to 64 fell by 141,000, indicating that older workers accounted for more than the net increase in total employment. The government said employment quality was also improving, citing the manufacturing rebound driven by stronger exports and a growing share of regular employees. The number of regular employees increased by 253,000, the largest gain since November 2025. They accounted for 57.8% of all employed people, a record high. However, rising tensions in the Middle East and continued weakness in construction, agriculture, forestry and fisheries remain risks for the labor market. An official from the Ministry of Finance and Economy said, “The increase was adjusted due to base effects, but seasonally adjusted employment has recovered to the level seen before the Middle East war.” The official added, “We will develop measures, including the National Jobs Project, to ensure that the benefits of economic growth translate into job creation.”