In August, the number of employed individuals increased by 184,000 compared to the same month last year, marking the third consecutive month of growth. The rise in employment was primarily driven by the service sector, while the declines in manufacturing and construction industries lessened, indicating an overall improvement in the job market. However, youth employment rates have fallen for 28 consecutive months, and sectors such as agriculture and forestry continue to face challenges.
According to the National Data Agency's employment report released on September 9, the total number of employed individuals reached 29,151,000 in August, an increase of 184,000 from the previous year. This follows increases of 63,000 in June and 108,000 in July, showing a consistent upward trend. Seasonally adjusted, employment rose by 82,000 from the previous month.
The employment rate for those aged 15 to 64, as per OECD standards, stood at 70.4%, up 0.5 percentage points from a year ago, the highest level recorded for August since statistics began in 1989. The overall employment rate for those aged 15 and older remained steady at 63.3%, also the highest for August since monthly records began in 1982. The labor force participation rate was 64.6%, and the unemployment rate held at 2.0%, unchanged from the previous year.
By age group, the employment rates for those in their 30s rose to 81.1% (up 0.3 percentage points), 40s to 80.7% (up 0.8 percentage points), and 50s to 78.8% (up 1.3 percentage points). In contrast, the employment rate for those aged 60 and older fell to 47.6%, a decrease of 0.3 percentage points.
The youth employment situation remains concerning. The employment rate for those aged 15 to 29 dropped to 44.1%, down 1.0 percentage point from a year earlier, marking 28 months of decline. Youth employment has decreased for 46 consecutive months, with the youth unemployment rate rising to 5.4%, an increase of 0.5 percentage points, the highest level since August 2022.
The youth labor force participation rate also fell to 46.6%, down 0.8 percentage points, the lowest since August 2020 when it was 46.4%. A representative from the National Data Agency noted, "While there was an increase in employment in sectors like arts, sports, and finance, declines in information technology and health services contributed to the drop in youth employment rates, leading to a decrease in participation rates as well."
However, the number of youth classified as 'inactive' decreased by 51,000 to 395,000, marking a seven-month decline. The National Data Agency suggested that the overall decrease in the youth non-labor force population contributed to this reduction, possibly indicating that some young people are transitioning to job-seeking activities due to policy support.
In terms of industry, employment growth in the service sector accelerated, with 345,000 more jobs compared to the previous year, an increase from 295,000 in July. Health and social services added 186,000 jobs, while arts, sports, and leisure services saw an increase of 73,000. The professional, scientific, and technical services sector experienced a decrease of 5,000 jobs, significantly less than the 44,000 drop in July.
Conversely, the accommodation and food services sector saw a decline of 26,000 jobs, the largest drop in 13 months. The National Data Agency attributed this to a base effect from increased employment last August due to consumer coupon issuance.
While manufacturing and construction sectors continued to see job losses, the declines were less severe. Manufacturing jobs decreased by 38,000, a reduction from the 68,000 drop in July, while construction jobs fell by 32,000, down from 57,000. Analysts suggest that expectations of easing raw material costs and improved business sentiment contributed to this trend in manufacturing, while better supply conditions affected construction.
In agriculture, forestry, and fishing, employment fell by 109,000, a larger decline than the 80,000 drop in July. This was attributed to structural factors such as population decline in rural areas, aging demographics, rising production costs, and increased days of extreme heat.
By employment status, the number of regular workers increased by 180,000, while temporary workers decreased by 50,000 and daily workers by 17,000. Among non-wage workers, self-employed individuals with employees rose by 47,000, and those without employees increased by 62,000, while unpaid family workers decreased by 37,000.
A representative from the Ministry of Finance and Economy stated, "We assess that the employment improvement trend has continued for three consecutive months since May, with growth primarily in the service sector and reduced declines in manufacturing and construction compared to last year."
However, uncertainties remain regarding future employment trends. Fluctuations in oil and raw material prices due to heightened tensions in the Middle East and the base effect from last September's employment increase of 312,000 may limit future growth. A ministry official remarked, "It is difficult to say that employment has recovered to pre-Middle East war levels, and the stability of the region will be a key variable."
The government plans to strengthen its response to vulnerable employment sectors, including youth and industries like manufacturing, construction, and agriculture. The Ministry of Finance and Economy stated, "We will devise measures to address challenges in struggling sectors through dedicated job task forces and expedite the implementation of three major mega-projects to enhance overall job creation in the economy."
* This article has been translated by AI.
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