Ministry of Employment and Labor releases August labor market trends based on employment administration statistics

Manufacturing enrollment rises by 2,000, led by other transport equipment, electronics and machinery sectors

Overall employment insurance enrollment up 278,000, but youth and construction hiring remain weak

A view of Hanwha Ocean's Geoje shipyard [Yonhap]
A view of Hanwha Ocean's Geoje shipyard [Yonhap]

Employment insurance enrollment in manufacturing turned positive for the first time in 15 months, driven by hiring gains in shipbuilding and semiconductor-related industries. However, analysts note that the increase in foreign workers outpaced the overall manufacturing enrollment gain, raising questions about whether the recovery is truly domestic-led.

According to the Ministry of Employment and Labor's August labor market trends report released Monday, the number of regular employment insurance enrollees stood at about 15.905 million as of end-August, up 278,000, or 1.8 percent, from a year earlier. Enrollment has grown by roughly 270,000 to 280,000 for eight consecutive months.

[Provided by the Ministry of Employment and Labor]
[Provided by the Ministry of Employment and Labor]

By sector, the services industry led overall growth with 280,000 new enrollees. Healthcare and welfare recorded the largest gain at 112,000, while accommodation and food services, business services, professional and scientific technology, and education services also posted increases.

Manufacturing enrollment reached about 3.847 million, up 2,000 from a year earlier — the first year-on-year increase in 15 months. The other transport equipment manufacturing subsector posted the largest gain at 7,600, with shipbuilding and boat construction alone adding 5,700 enrollees, extending its streak to 45 consecutive months of growth.

Electronics and telecommunications manufacturing enrollment rose by 4,700. Within that category, semiconductor workers accounted for 6,700 of the increase, driving the overall gain. Special-purpose machinery and equipment manufacturing — which includes semiconductor fabrication equipment — added 1,800 enrollees, marking six consecutive months of growth. Food manufacturing enrollment also rose by 2,900.

The ministry attributed the manufacturing recovery to growth in shipbuilding, semiconductor-related equipment, and exports of ships and food products.

Still, analysts caution that it is too early to declare a broad manufacturing recovery. Foreign workers enrolled under the Employment Permit System (E-9 and H-2 visa categories) increased by 12,000 in August, with 90.1 percent of them concentrated in manufacturing. Excluding foreign workers, manufacturing enrollment actually fell by 10,000.

The divergence across subsectors was also pronounced. Automotive manufacturing shed 2,300 enrollees, while electrical equipment lost 1,800, non-metallic minerals 3,500 and textile products 3,200. Chemical products manufacturing fell by 2,400, extending its decline to seven consecutive months.

Construction enrollment stood at 742,000, down 7,000 — a 37th consecutive monthly decline — though the pace of decline is narrowing, led by general construction. Among age groups, enrollees aged 29 and under fell by 56,000, a drop the ministry said partly reflects a 144,000 decline in the youth population overall. The ministry added that the rate of decline in youth enrollment is gradually narrowing.

Unemployment benefit indicators fell across the board. New applicants totaled 81,000, down 200 from a year earlier, while recipients fell by 23,000 to 615,000. Total payouts came to 1.0084 trillion won ($744 million), down 24.5 billion won, or 2.4 percent, from the same month last year. The ministry said the improvement likely reflects a modest recovery in employment conditions compared with last year.

New job postings through the Goyong24 employment portal rose by 6,000 to 161,000, while new job seekers fell by 1,000. As a result, the job-openings-to-applicants ratio — the number of available positions per job seeker — rose to 0.46 from 0.44 a year earlier, marking six consecutive months of increase.


fact0514@heraldcorp.com