Seoul: South Korea will come up with detailed measures to create jobs for young people soon in response to recent challenges in the labor market, the finance minister said Thursday. Finance Minister Koo Yun-cheol made the remark during a meeting with economy-related ministers in Seoul, noting that employment among young people, as well as in the manufacturing sector, continues to remain sluggish despite overall gains.

According to Yonhap News Agency, on the previous day, the data ministry reported that South Korea added 108,000 jobs in July from a year earlier. However, the employment rate for those aged 15 to 29 fell 1.6 percentage points to 44.2 percent, marking a decline on-year for the 27th consecutive month. The unemployment rate for the age group rose 1.3 percentage points to 6.8 percent, representing the largest on-year increase in more than five years.

"The prolonged Middle East war, the unprecedented heat wave, along with a drought in some regions, are weighing on employment and consumer prices," Koo said. "The government plans to promptly prepare and announce measures to revitalize employment among young people, along with tailored policies for sectors facing challenges, such as manufacturing and construction," he added.

Jobs in the manufacturing sector fell by 68,000 in July from a year earlier, marking the 25th consecutive month of decline. Similarly, construction-related jobs have lost ground on-year for the 27th consecutive month.

Koo emphasized the government's commitment to implementing the three megaprojects initiative at full speed, ensuring that corporate investment leads to a virtuous cycle of securing growth engines and creating quality jobs preferred by young people. South Korea unveiled these megaprojects in late June, which include plans for large-scale investments in a semiconductor production cluster, physical AI, and AI data centers in regional areas.