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Job growth slows to weakest pace in 13 months

Published: 11 Feb. 2026, 18:54 Updated: 11 Feb. 2026, 19:24

A person looks at job postings at an employment and welfare center in Mapo District, western Seoul, on Feb. 11. [NEWS1]

Job growth slowed to its weakest pace in 13 months in January, as youth employment remained weak and cold weather curbed hiring among older workers, government data showed on Wednesday.

Early signs indicate that artificial intelligence may be weighing on hiring in professional services, particularly in entry-level roles, though officials said it was too early to draw firm conclusions.

The number of employed people aged 15 and older rose by 108,000 from a year earlier to 27.99 million last month, according to the Ministry of Data and Statistics’ January employment report. The increase marked the smallest gain since December 2024, when employment fell by 52,000 in the aftermath of former President Yoon Suk Yeol's botched martial law attempt.

Manufacturing and construction, which have faced a prolonged downturn for more than a year, saw their declines narrow. But hiring in the service sector, which had supported overall job growth, weakened.

Prospective law school applicants line up outside the exhibition hall at the aT Center in Seocho District, southern Seoul, ahead of a joint admissions briefing session for law schools for the 2025 academic year on Aug. 22, 2024. [YONHAP]

Employment for professional, science and technical positions fell by 98,000 in January after dropping 56,000 in December. The January drop was the largest monthly decline since the current industry classification system was introduced in 2013.

The sector includes research and development, science, architecture and professional services such as legal, accounting, tax and medical work. Employment in the sector increased steadily for more than four years before edging down in October and has since extended its decline.

“Employment in the sector had increased significantly over time, so there may have been a technical adjustment," said Bin Hyun-joon, the chief of the social statistics bureau at the Data Ministry.

"Some analyses suggest that AI is replacing entry-level tasks in professional services, so hiring in those areas may have slowed," the official added.

Kim Tae-woong, head of the Human Resources Policy Division at the Ministry of Economy and Finance, said it was too soon to conclude that AI was costing jobs, noting that its effects vary widely.

“The impact of AI differs by industry and by demographic group, so it is difficult to make a uniform judgment at this stage about whether AI is reducing jobs. Considering base effects, we need to monitor the situation for a few more months."

Counseling desks for middle-aged job seekers are empty at an employment and welfare center in Mapo District, western Seoul, on Feb. 11. [YONHAP]

By age group, youth employment — classified as those aged 15 to 29 — continued to fall.

The number of employed people aged 15 to 29 fell by 175,000 from a year earlier in January. The youth employment rate dropped 1.2 percentage points to 43.6 percent, the lowest for any January since 2021.

In contrast, the overall employment rate for those aged 15 to 64 rose 0.4 percentage points from a year earlier to 69.2 percent, the highest January rate since related data collection began in 1989.

Job growth among those aged 60 and older also slowed. Employment in the age group rose by 141,000, the smallest increase since January 2021.

“As employment in agriculture, forestry and fisheries continues to decline due to aging, cold weather last month reduced activity among older people," Bin said.

"The resumption of public job programs for seniors was also delayed because of the cold snap, and some older individuals were classified as unemployed or economically inactive," he added.

A vendor waits for customers at an early-morning farm produce market along the Namdae Stream in Gangneung, Gangwon, on Feb. 8. [YONHAP]

The number of unemployed people rose by 120,800 from a year earlier to 1.21 million in January. The unemployment rate climbed 0.4 percentage points to 4.1 percent, remaining above 4 percent for a second straight month.

The youth unemployment rate rose 0.8 percentage points to 6.8 percent. Officials attributed the increase in part to a hiring shift toward rolling recruitment and experienced workers, which has lengthened job searches for young applicants.

The number of people who neither worked nor sought work — classified as “resting” — rose by 110,000 from a year earlier to 2.78 million, the highest for any January since the data series began in 2003. Among those aged 15 to 29, 469,000 fell into that category, up 35,000 from a year earlier.

“Difficulties for young people in the labor market continue, and we will swiftly push forward tailored measures such as training AI field practitioners and employment retention incentives for jobs outside the greater Seoul area," Kim said.

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.
BY JANG WON-SEOK [[email protected]]