South Korea's job market is showing signs of deepening strain, with key employment indicators hitting their worst levels since the late 1990s IMF financial crisis.
According to the Ministry of Employment and Labor’s report on “Labor Market Trends Based on Employment Administration Statistics for June 2025,” released on July 14, the number of regular subscribers to the country’s employment insurance programme stood at 15.59m last month- an increase of just 1.2% (181,000 people) year-on-year.
This marks the slowest growth rate in employment insurance enrolment since the government began tracking the data in 1997.
By industry, employment declined in both manufacturing and construction sectors, with job losses of 1,000 and 19,000 respectively. The downturn in manufacturing was concentrated in segments such as textiles, metal processing, machinery, rubber and plastics and electrical equipment. In contrast, the service sector added 201,000 jobs, driven by gains in healthcare and welfare, business services, professional science, hospitality, and transportation and warehousing.
Ministry of Employment and Labor head of future employment analysis Cheon Gyeong-gi said, “The growth rate in the first half of the year is nearly at 0%, and with goods exports also being 'negative,' coupled with tariff uncertainties, the employment situation is actually tough in manufacturing."
In June, new applications for unemployment benefits in South Korea reached 86,000, marking a 2.4% increase (2,000 additional claims) compared to the same month last year. The total number of unemployment benefit recipients rose to 654,000- up 5% or 31,000 year-on-year. Correspondingly, the total amount disbursed climbed to KRW1.0516tn (approx. $751m), reflecting a 10.9% rise, or an additional KRW103.6bn.