South Korea's February jobs data show mixed recovery as youth unemployment climbs

South Korea’s February employment data show a mixed picture: overall jobs rose, but youth unemployment climbed to its highest level in five years. The National Data Office reported that 28.413 million people were employed in February, up 234,000 from a year earlier, a 0.8% increase.

However, the youth segment faced the sharpest decline among age groups. Employment for people aged 15 to 29 fell by 146,000, the largest drop across age groups. Within that group, employment in the 20–29 age bracket was reported to have fallen as much as 163,000, according to the release. The unemployment rate for the 15–29 cohort rose to 7.7%, the highest for February in five years.

The gains were concentrated among older workers. Employment for those aged 60 and over rose by 287,000, while the 30s and 50s also increased by 86,000 and 6,000 respectively. Officials attributed part of the senior rise to a low base effect from January, when extremely cold weather temporarily dampened elderly job programs.

In sectoral terms, job losses persisted in core industries. Manufacturing employment declined by 16,000, marking a 20th straight month of decline, while construction shed 40,000 jobs, the 22nd consecutive monthly drop. The February figures underscore the uneven recovery in the economy’s backbone industries.

The professional, scientific and technical services sector also contracted, with 105,000 fewer jobs in February, continuing a three-month downturn. The decline in this sector was broader than in the prior month, though officials cautioned that the sector’s composition across industries makes single-month analyses difficult to attribute to a single cause. AI development was noted by analysts as a potential factor affecting demand for high-skill services, though the data office said the dataset alone cannot confirm causality.

The labor market’s shift toward experienced hiring is highlighted by another domestic study. A 2025 INcruit survey found the median “appropriate age” for new college hires to be 30.4 for men and 28.2 for women, up about a year from 2024. The longer job-preparation period and employers’ preference for experienced workers are cited as contributors to fewer fresh graduates securing entry-level roles.

For U.S. readers, the February figures matter beyond Korea because they reflect how AI adoption and ongoing industrial restructuring are reshaping labor markets in a technology- and export-driven economy. Korea remains a major supplier of advanced semiconductors and electronics, and shifts in its job mix—especially in manufacturing and high-tech services—can influence global supply chains, pricing, and outsourcing decisions. The aging workforce and the potential skill mismatches also have implications for international investment, policy dialogue on automation, and the competitiveness of Korea’s tech sector in global markets.