Job Growth Hits Record Low in South Korea

According to the 2023 Job Administrative Statistics released by Statistics Korea on December 6, the number of jobs in South Korea increased by a mere 200,000 last year, marking the lowest annual increase on record. This brings the total number of jobs to 26.66 million, reflecting a modest 0.8% growth from the previous year.

The detailed statistics reveal a mixed picture of the job market. While approximately 2.98 million new jobs were created last year, about 2.77 million jobs disappeared, resulting in a net increase of only 200,000 jobs. This stark contrast is a significant slowdown compared to the previous year, 2022, when the number of jobs surged by 870,000, the largest increase on record.

A closer look at the data shows that jobs at large companies decreased by 40,000, contributing to a decline in the quality of employment. The proportion of jobs at large companies out of the total jobs fell slightly from 16.6% in 2022 to 16.5% in 2023. In contrast, jobs at small and medium-sized enterprises (SMEs) increased by 153,000, indicating a shift in the job market dynamics.

The job market also saw a significant reduction in self-employed individuals, particularly in the wholesale and retail sectors, where jobs decreased by 40,000, and in transportation and warehousing, which saw a reduction of 50,000 jobs. This trend highlights the ongoing challenges faced by self-employed individuals in these sectors.

By age group, the job market presented a varied landscape. Jobs for those in their 20s and 40s notably decreased, with a reduction of 80,000 and 110,000 jobs, respectively. In contrast, jobs for those in their 30s and 50s saw a modest increase of 10,000 and 20,000, respectively. The most significant growth was observed among those in their 60s, with an increase of 380,000 jobs, indicating that most of the job growth last year was concentrated among the elderly.

A Statistics Korea official explained, "After the employment market slump caused by COVID-19, the number of jobs increased significantly in 2022 but has now slowed considerably." The official added, "The significant reduction in self-employed individuals, particularly in the wholesale and retail sectors, has had a substantial impact."

The economic downturn caused by the COVID-19 pandemic led to widespread job losses and business closures globally, significantly disrupting labor markets. South Korea's job market, which had seen a sharp increase in unemployment rates during the pandemic, experienced a recovery phase in 2022. However, the latest statistics indicate that this recovery has slowed down considerably.