South Korea employment falls, youth joblessness rises as inactive population grows

South Korea's labor market showed a sharp downturn in May. The number of employed persons dropped by 40,000 to 29.12 million, the first decline in 1½ years. At the same time, unemployment‑benefit payouts fell 7 % to 1.328 trillion won and new benefit applications decreased by 7.2 % to 78,000, reflecting that many job‑seekers are leaving the labour force rather than claiming benefits. The non‑economically active population grew by 264,000 to 15.986 million, and temporary workers fell by 121,000 to 4.834 million, underscoring a loss of precarious jobs that often lack insurance coverage.

A separate labour‑market report revealed a generational shift in stable (regular‑contract) employment. Workers aged 60 and over numbered 2.2 million, overtaking youth (15‑29) who fell to 2.124 million – the first time older workers have outnumbered young workers in secure jobs. Youth stable employment has declined 17 % over four years, dropping 6.9 % in May alone, while older‑worker stable jobs rose 42.8 % in the same period. The trend is driven by shrinking manufacturing and IT hiring for young workers and growth in health and social‑welfare sectors that favour older employees.