The number of employed persons in non-capital regions (provincial areas) surged by 33 times the increase seen in the Seoul metropolitan area during the second half of last year, driving the nation's overall employment recovery. Analysts attribute the trend to a combination of domestic demand recovery and government consumption stimulus policies.
According to employment data released Monday by the government and the National Data Center, non-capital regions added 200,000 jobs in the second half of last year compared with the same period a year earlier. The figure marked a significant expansion from the 98,000 increase recorded in the first half. In contrast, job growth in the capital region plummeted from 83,000 in the first half to just 6,000 in the second half.
Non-capital regions also outpaced the capital area in employment rates. The employment rate in non-capital regions rose to 63.2% in the second half, up 0.8 percentage points from 62.4% in the first half. The figure exceeded both the capital region's 63.0% and the national average of 63.1% over the same period.
The expansion was driven by growing jobs in the service sector amid a domestic economic recovery, with employment quality also improving as the number of permanent positions increased. Consumption stimulus policies such as consumer coupons and regional love gift certificates are seen as having boosted local spending and contributed to the employment recovery in provincial areas.
By industry, the increase in service sector jobs was particularly notable. Non-capital regions added 330,000 service sector jobs in the second half, roughly double the 169,000 increase recorded in the capital region.
Employment quality also showed improvement. The number of permanent workers in non-capital regions grew by 200,000 in the second half, widening from the 120,000 increase in the first half.
However, the construction and manufacturing sectors continued to struggle regardless of region. Construction employment declined by 104,000 nationwide in the second half, and manufacturing also sustained its downward trend. The pace of decline, however, moderated somewhat compared with the first half.
The government plans to continue promoting consumption and investment to sustain the province-led employment recovery. President Lee Jae-myung said at a Cabinet meeting the previous day, "I am told that employment has increased significantly in provincial areas since the new administration took office," adding, "Please conduct a precise analysis of the causes."
A Ministry of Economy and Finance official said, "To sustain the trend of expanding regional jobs, we will mobilize whole-of-government capabilities toward a province-led growth strategy that includes boosting local investment and consumption and improving working conditions."