South Korea's employment grew by more than 200,000 in February, marking the largest increase in five months. However, while overall employment indicators continued to improve, youth employment deteriorated sharply, revealing a widening gap in the labor market.
According to the "February 2026 Employment Trends" released by the National Data Agency on the 18th, the number of employed persons last month reached 28.413 million, an increase of 234,000 from the same month last year. This represents the largest gain since September last year, when employment rose by 312,000.
The employment rate continued its upward trajectory. The employment rate for those aged 15-64 rose 0.3 percentage points year-on-year to 69.2%, the highest February reading since records began in 1989. The labor force participation rate for those aged 15 and older also set a new record at 64.0%, up 0.3 percentage points from a year earlier.
Youth employment, however, worsened. The employment rate for those aged 15-29 fell 1.0 percentage point year-on-year to 43.3%, the lowest February level in five years since February 2021 (42.0%) during the COVID-19 pandemic. On a monthly basis, the rate has declined for 22 consecutive months since May 2024.
Youth unemployment indicators also showed marked weakness. The youth unemployment rate rose 0.7 percentage points year-on-year to 7.7%, the highest level in five years since February 2021 (10.1%). Job losses concentrated in manufacturing and construction since last year appear to have contributed to rising youth unemployment. Manufacturing employment fell by 16,000 year-on-year to 4.371 million, marking 20 consecutive months of decline. Construction employment dropped by 40,000 to 1.869 million, extending its decline to 22 straight months.
The return of some discouraged youth to the labor market also appears to have contributed to the higher unemployment rate. The "resting" population among youth fell by 20,000 (3.9%) year-on-year in February, and the number of people in their 20s classified as "resting," which had increased every month since September last year, also turned to decline this month. Since the "resting" population is classified as economically inactive and excluded from unemployment statistics, changes in this category can create statistical distortions.
"Young people who began job-seeking activities during the civil service exam application period may have been counted as unemployed, potentially contributing to the rise in the unemployment rate," explained Bin Hyun-jun, Director of the Social Statistics Bureau at the National Data Agency.
Kim Tae-woong, Director of Workforce Policy at the Ministry of Finance and Economy's Consumer Economy Bureau, stated, "We are closely monitoring developments as a prolonged Middle East crisis could impact the employment market," adding, "We plan to strengthen efforts to support vulnerable employment sectors including youth."