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South Korea Records First Job Loss in 17 Months as Manufacturing Slumps

A chip-driven export rebound has not created broad hiring, leaving factories weak, youth employment sliding, with the jobless rate rising.

Overview

  • Government data show South Korea had 29.12 million employed in May 2026, a net fall of 40,000 from a year earlier and the first monthly decline in 17 months.
  • Manufacturing lost 140,000 jobs in May, marking a 23rd straight month of year-on-year declines and the steepest drop since February 2019.
  • The agriculture, forestry and fisheries sector shed 121,000 jobs while services led overall gains, led by health and social welfare (+212,000), arts and recreation (+44,000) and transport and logistics (+36,000).
  • Unemployment edged up to 2.9% with 878,000 people out of work, youth employment fell sharply, and the number of economically inactive people rose by 264,000, signaling weaker labor-market participation.
  • Senior officials say recent export growth has been concentrated in semiconductors that generate few domestic jobs, prompting plans for targeted worker training and regional support for hard-hit industries.