South Korea's Q2 Employment Growth Hits 5.5-Year Low at 32,000, Youth Joblessness Extends 15th Quarter

According to data from South Korea's National Statistics Portal (KOSIS), employment growth in the second quarter slowed to just 32,000 people year-over-year, marking the smallest increase in 5.5 years. The unemployment rate fell 0.3 percentage points to 63.2%, the first quarterly decline since the early stages of COVID-19 in 2020.

Youth employment (ages 15–29) declined by 215,000 people, extending losses for the 15th consecutive quarter. Manufacturing shed 97,000 jobs, the steepest drop in 22 quarters, while construction and retail each lost roughly 40,000 positions. The Bank of Korea attributed the deterioration partly to rising costs stemming from Middle East tensions, with smaller enterprises absorbing disproportionate pressure.