Manufacturing, construction employment continues to decline, sparking job market stability concerns
Published: 11 Aug. 2025, 18:37
![A job seeker reads posters on open positions at a job fair hosted by the Ministry of Employment and Labor, North Gyeongsang Provincial Government and Gumi city at a sports center in Gumi on July 16. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/08/11/2f735552-56ee-4b4b-a960-282e7a8c532f.jpg)
A job seeker reads posters on open positions at a job fair hosted by the Ministry of Employment and Labor, North Gyeongsang Provincial Government and Gumi city at a sports center in Gumi on July 16. [YONHAP]
The number of manufacturing workers enrolled in employment insurance fell for the second straight month in July, while construction sector enrollment dropped for the 24th consecutive month — the longest decline on record — reflecting a prolonged slump in both industries.
With manufacturing and construction, the twin pillars of the domestic job market, faltering, the number of available jobs per job-seeker fell to 0.4 — the lowest July figure since 1999 during the Asian financial crisis.
According to the Ministry of Employment and Labor’s July 2025 Labor Market Trends Based on Employment Insurance Statistics, released Monday, total full-time employment insurance subscribers stood at 15.599 million at the end of July, up 180,000, or 1.2 percent, from a year earlier. That marks the smallest year-on-year increase for July since 2003.
Employment insurance enrollment is seen as a gauge of the number of workers in relatively stable, higher-quality jobs. While total enrollment surged in 2022 and has grown modestly since, the manufacturing and construction sectors have been losing members.
The problem is that the number of employees in the construction and manufacturing industries, the two largest sources of domestic employment, has decreased. Construction sector enrollment fell by 19,000 to 750,000 in July, extending its record contraction to two years. Manufacturing enrollment dropped by 5,000 to 3.846 million — but excluding the automatic enrollment of foreign workers under the Employment Permit System, the decline widens to 24,000.
“The service sector continued to grow steadily, but manufacturing has been weighed down by weak production and exports,” said a ministry official.
![People are seen attending a job fair at a convention center in Gyeonggi on July 9. [WOO SANG-JO]](https://koreajoongangdaily.joins.com/data/photo/2025/08/11/c7df57a3-5076-4647-bc8c-633bb93c9779.jpg)
People are seen attending a job fair at a convention center in Gyeonggi on July 9. [WOO SANG-JO]
The manufacturing slump also affected unemployment benefit payments. The number of recipients stood at 673,000 in July, up 21,000, or 3.2 percent, from a year earlier.
“The number of new applicants for unemployment benefits decreased by 1,000 to 111,000, but in the manufacturing industry, the number of new applications increased due to a decrease in employment insurance subscribers,” a ministry official said. "The increase in long-term recipients receiving unemployment benefits for eight to nine months also had an impact."
The sharpest decline by age group was among those under 29, with youth enrollment down 90,000 from a year earlier. By industry, youth enrollment fell by 20,000 in manufacturing, 20,000 in information and communications, 17,000 in wholesale and retail, and 8,000 in professional, scientific and technical services. The ministry also cited the effect of demographic decline.
Job openings have tightened further. The job openings-to-seekers ratio fell to 0.4, meaning only four out of 10 job seekers could find work, down from 0.51 a year earlier and the lowest July figure since 0.39 in 1999.
![Young job seekers receive counseling on employment at a job fair in Busan on June 27. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/08/11/bc592f31-105d-4f49-8b6b-2e3d828adf64.jpg)
Young job seekers receive counseling on employment at a job fair in Busan on June 27. [YONHAP]
The job openings-to-seekers ratio dropped sharply from 0.51 a year earlier to 0.40, marking the lowest July figure since 0.39 in 1999.
The number of new job postings stood at 165,000 in July, down 34,000, or 16.9 percent, from the same month last year. In contrast, the number of new job seekers rose by 21,000, or 5.5 percent, to 411,000, pushing the ratio lower. The fall was mainly driven by a decline of 19,000 in new manufacturing job postings.
“We believe the overall decline in the job-to-seekers ratio is due to the sluggish manufacturing economy,” said Chun Gyeong-gi, Director of the Future Employment Analysis Division at the ministry. "However, if job demand in the service industry, which is currently driving job growth, increases alongside factors such as retail sales and livelihood recovery support, employment could recover slightly, particularly in these sectors, despite the uncertainty surrounding the manufacturing sector."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom staff.
BY KIM YEON-JOO [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)