South Korea's job growth fell below 100,000 in April, marking the weakest pace in 16 months, as prolonged conflict in the Middle East weighed on oil prices and logistics, dampening hiring in domestic consumption and logistics sectors. The youth employment rate, a chronic weak spot in the country's labor market, declined for the 24th consecutive month.
According to the "April 2026 Employment Trends" report released by the National Data Agency on the 13th, the number of employed persons aged 15 and older stood at 28.961 million last month, up 74,000 from a year earlier. Employment has risen for 16 consecutive months since returning to growth in January last year.
However, the pace of increase slowed sharply to the 70,000 range in April, down from 234,000 in February and 206,000 in March. On a monthly basis, it marked the weakest reading since a decline of 52,000 in December 2024.
The overall employment rate for those aged 15 and older fell 0.2 percentage point from a year earlier to 63.0%, the first decline since December 2024, when it dropped 0.3 percentage point. The employment rate refers to the share of employed persons in the total population, including those not actively seeking work.
The slump in youth employment deepened further. The employment rate for those aged 15 to 29 fell 1.6 percentage points from a year earlier to 43.7%. The rate has declined for 24 consecutive months, with the latest drop the steepest since August 2025. It marks the longest stretch of declines since the 51-month slide from September 2005 to November 2009, driven by the global financial crisis, rising college enrollment and growing preference for experienced workers.
The number of unemployed stood at 853,000, down 2,000 from a year earlier. The unemployment rate was 2.9%, unchanged from a year earlier. Meanwhile, the number of discouraged jobseekers rose by 15,000 to 353,000, turning up for the first time in five months.
By industry, professional, scientific and technical services posted the largest decline. Employment in the sector fell by 115,000 from a year earlier, the biggest drop since the industry classification was revised in 2013. The government attributed the decline to a base effect from a sharp increase in the sector last April.
Manufacturing employment fell by 55,000 from a year earlier, marking 22 consecutive months of decline since July 2024. While exports continued to rise, led by semiconductors, weak exports of automobiles and machinery, which have high employment multipliers, weighed on hiring. Employment in agriculture, forestry and fisheries also dropped by 92,000 from a year earlier.
Hiring adjustments in domestic consumption sectors were also pronounced. Employment in wholesale and retail trade fell by 52,000 from a year earlier, the largest decline since February last year. Employment in accommodation and food services also fell by 29,000 from a year earlier. Employment in transportation and warehousing rose by 18,000 from a year earlier, but the pace of increase slowed sharply from March.
The government attributed the weakness to softer consumer sentiment and logistics uncertainty stemming from the prolonged Middle East war. "Wholesale, retail, food and accommodation have been affected by weaker consumer sentiment, and in transportation, rising oil prices may have added to freight cost burdens," said Kim Tae-woong, director of the workforce policy division at the Ministry of Economy and Finance.
In contrast, employment in health and social welfare services rose by 261,000 from a year earlier, supporting overall job gains. The increase was attributed to growing demand for care services and the effects of direct job creation programs. Employment in arts, sports and leisure-related services rose by 54,000 from a year earlier, while real estate employment rose by 49,000.
Experts said it is too early to conclude that the April slowdown is merely a temporary shock from the Middle East war. "We will need to look at May employment data to determine whether this decline reflects a temporary adjustment tied to the business cycle or a structural factor," said Choi Young-ki, former president of the Korea Labor Institute. "Even if the Middle East war ends, the impact of oil prices could persist for several more months, so whether employment rebounds will also need to be watched over time."
The government views external uncertainty as a downside risk but expects employment indicators to improve after May, when supplementary budget spending gets into full swing. The Ministry of Economy and Finance plans to provide tailored employment support services to about 100,000 people through the Youth New Deal and to monitor the impact of artificial intelligence (AI) on the labor market through both indicators and on-site assessments. A joint interagency "Basic Plan for Employment Stability in Industrial Transition" will also be announced in the first half of the year.
"As the execution of supplementary budget projects including high oil price relief payments and the Youth New Deal gets into full swing, employment indicators are expected to improve," said Lee Hyung-il, first vice minister of economy and finance. "However, downside factors such as the prolonged impact of the Middle East war also coexist."
