South Korea Plans Sector-Specific Job Support Amid Economic Uncertainty

South Korea is preparing industry-focused employment support measures to address ongoing labor market challenges and economic uncertainty, according to the finance ministry.

Government officials discussed employment conditions after the country recorded a decline of 40,000 jobs in May compared with the same month last year, marking the first year-over-year drop in employment in 17 months.

Officials noted that while a peace agreement related to the Middle East conflict has been reached, economic and employment concerns remain. During the meeting, participants reviewed challenges affecting the labor market, including demographic shifts, increased demand for experienced workers, and the broader impact of the Middle East crisis.

The government said it plans to strengthen support for sectors such as manufacturing, construction, agriculture, and fisheries through targeted policy measures.

Youth employment was also a key focus. The employment rate among people aged 15 to 29 stood at 43.8% in May, lower than the level recorded a year earlier.

In addition, authorities said they will work on longer-term employment initiatives, including enhanced hiring incentives, while preparing for changing workforce needs linked to the expansion of artificial intelligence technologies.