First decline since December 1999, amid Asian financial crisis aftermath; youth and manufacturing sectors lead drop

The number of permanent jobs — those offering the highest employment stability — fell for the first time in 26 years and five months. Permanent positions held by workers in their 20s and 30s posted their steepest decline since the COVID-19 pandemic. The drop was particularly sharp in manufacturing. Workers in their 20s saw large losses in the information and communications sector, while those in their 30s saw steep declines in professional, scientific and technology services — fueling analysis that the spread of AI is now fundamentally reshaping hiring patterns.

The number of permanent wage workers stood at 16.74 million in May, down 7,000 from the same month last year, according to an analysis of the Ministry of Statistics' national statistics portal KOSIS and economically active population microdata released Monday.

Permanent wage workers are salaried employees expected to remain employed for at least one year and are classified as holding quality jobs close to full regular employment. The last time this figure declined was in December 1999, when it fell by 56,000 amid the lingering effects of the Asian financial crisis.

After turning positive in January 2000, the count had risen year-on-year for 316 consecutive months through April. It held up even during the COVID-19 pandemic in December 2020, and at its peak in 2022 was growing by as many as 800,000 to 900,000 per month, serving as a pillar of the labor market.

After expanding by 200,000 to 300,000 last year, growth in permanent employment narrowed to around 100,000 early this year before ultimately turning negative last month. However, permanent workers' share of total employment hit a record high of 57.5 percent — a reflection of the fact that overall employment fell by 40,000.

The decline in permanent jobs was particularly pronounced among youth. In May, the number of permanent workers in their 20s fell by 164,000 and those in their 30s by 33,000, for a combined drop of 197,000. That was the largest decline since December 2020, when the figure fell by 217,000 at the height of the COVID-19 shock.

Manufacturing led the decline in permanent jobs among youth. The sector shed 36,000 permanent workers in their 20s and 56,000 in their 30s, for a combined loss of 92,000 across the two age groups.


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