Seoul: South Korea recorded an on-year employment growth of 193,000 jobs in 2025, maintaining the 100,000 level for the second consecutive year. This growth occurred despite ongoing job losses in the manufacturing and construction sectors, and continued sluggishness in youth employment, as revealed by recent data.

According to Yonhap News Agency, the number of employed individuals rose by 0.7 percent from the previous year, reaching 28.77 million. This increase follows a more robust period of job creation in the immediate aftermath of the pandemic, which saw 816,000 new positions in 2022, the largest on-year increase in 22 years. However, the pace of job creation slowed significantly, with only 327,000 new jobs in 2023 and a further decline in 2024 with just 159,000 positions added.

The construction sector experienced a significant downturn, shedding 125,000 jobs in 2025, marking the largest decline since the industrial classification revision in 2013. The manufacturing sector, a critical part of the economy, also suffered, losing 73,000 jobs, the most substantial decline since 2019. Additionally, the agriculture, forestry, and fisheries sector saw a reduction of 107,000 jobs.

Conversely, the health and social welfare services sector witnessed a significant increase, adding 237,000 jobs to reach a record 3.18 million workers. Employment in professional, scientific, and technical services rose by 54,000 positions, while the financial and insurance services sector gained 44,000 jobs.

Age-wise, employment for individuals aged 60 and older surged by 345,000, the largest increase across all age groups. In stark contrast, there was a drop of 170,000 jobs for those in their 20s, partly due to a shrinking population in this age bracket. The number of people taking a break from work increased by 88,000 to 2.56 million, with 309,000 individuals in their 30s, the highest recorded since data collection began in 2003.

A ministry official, Bin Hyun-joon, explained that the reasons for leaving the workforce have shifted over time. While previously many left for childcare or household duties, now more people are categorized as taking a break. He also noted that recruitment practices favoring experienced positions and ad hoc hiring tend to disadvantage younger job seekers.

The employment rate for those aged 15 and older rose by 0.2 percentage points to 62.9 percent in 2025, while the rate for individuals aged 15-64 increased by 0.3 percentage points to 69.8 percent. In December alone, South Korea added 168,000 jobs compared to the previous year, a sharp decrease from the 225,000 jobs added in November, marking the smallest growth since August's 166,000 jobs increase.