The employment rate in seven special metropolitan cities in South Korea has dropped for the first time since record-keeping began, attributed to a downturn in the construction industry and a decline in youth employment.
According to a report released by the National Data Agency, the employment rate in the seven special metropolitan cities of South Korea—Seoul, Busan, Daegu, Incheon, Gwangju, Daejeon, and Ulsan—has registered a decrease for the first time, with 11,589,000 employed individuals, marking a decline of 40,000 compared to the previous year. The employment rate fell by 0.2 percentage points to 58.8%. Despite higher employment rates in areas like Incheon and Daegu Gunwi, others such as Busan Yeongdo and Seoul Gangbuk fell below the average.
The decline in employment figures can be linked to a prolonged downturn in the construction sector and the increasing struggle with job placement among youth, who have a relatively higher presence in these metropolitan areas. For example, in Seoul, the number of employed individuals in the construction industry dropped from 308,000 in the previous year to 286,000, while the youth employment rate also saw a decrease to 48.2% in the fourth quarter, down from 49.9% the prior year. This trend highlights systemic challenges where certain demographics face higher unemployment rates.
On a brighter note, employment numbers did increase in nine other provinces, totaling 14,178,000 employed individuals, with an unchanged employment rate of 62.4%. In Hwaseong, Gyeonggi Province, where Samsung's semiconductor production line is located, the employment rate stands at 67.1%, surpassing the average. However, there was still a slight decrease in employment in rural areas of these provinces, suggesting that while urban centers benefit from industry-specific growth, rural areas continue to face economic challenges.
