Fewer Jobs and Rising Job Seekers: South Korea’s Employment Challenges in 2025 (Image supported by ChatGPT)
SEOUL, Aug. 12 (Korea Bizwire) — South Korea’s job market has continued to tighten, with the number of job openings per job seeker falling to just 0.4 in July 2025, the lowest level in 26 years.
This marks a significant decline, with the number of job openings per seeker reaching its lowest point since July 1999, according to data released by the Ministry of Employment and Labor.
The report highlighted that new job listings on the integrated employment platform “Employment 24″ fell by 16.9% compared to July 2024, with only 165,000 new job openings posted.
At the same time, the number of new job seekers increased by 5.5%, reaching 411,000. As a result, the job vacancy ratio dropped to 0.40, down from 0.51 in the same month last year.
Experts have pointed to a sluggish manufacturing sector as the primary cause of this decline, with fewer job openings and a significant drop in recruitment in this area. Manufacturing jobs in industries such as metals, textiles, machinery, and rubber have decreased, largely due to weaker production and export performance.
The overall number of people enrolled in employment insurance increased by 1.2% from last year, reaching 15.6 million by the end of July. However, the growth rate was the lowest since 2003, excluding the pandemic years.
South Korea’s Job Market Tightens: Job Openings Drop, Job Seekers Rise (Yonhap)
While the service sector saw a healthy increase of 203,000 enrollees, the manufacturing and construction sectors continued their downward trends, with enrollments in these industries declining by 5,000 and 19,000, respectively. The construction sector has faced persistent challenges, largely due to an ongoing industry slump.
On a positive note, service sector jobs, particularly in health and welfare industries, continued to show strong growth. In contrast, manufacturing jobs are being increasingly filled by foreign workers, accounting for nearly 90% of the employment in that sector under the Employment Permit System.
The report also noted a slight increase in unemployment benefits, with new claims dropping by 0.6% compared to the previous year. However, the total amount of unemployment benefits paid increased by 3.3% to 1.11 trillion won, reflecting a rise in long-term beneficiaries.
Despite the uncertainty in manufacturing, experts remain hopeful that the service sector’s job growth, particularly in retail and health services, may provide some relief and lead to a slight recovery in the overall job vacancy ratio.
M. H. Lee (mhlee@koreabizwire.com)
