Despite the rally of semiconductor-led exports and the nation’s bourses, the country’s employment rate declined in May for the first time in 17 months, according to the Ministry of Data and Statistics. The number of employed people stood at 29.12 million, 40,000 less than the same period in 2025. Perhaps most chillingly, the number of employed youth aged 15 to 29 fell by 255,000 compared to a year earlier. Ministry figures also showed a decline in employment for people in their 40s, while it rose slightly among those in their 60s. The decline in the country’s employment rate 17 months ago was attributed to the downturn caused by former President Yoon Seok Yul’s martial law declaration in December 2024. This time, however, the employment rate dropped even as the Korean economy grew under President Lee Jae Myung’s administration on the back of artificial intelligence (AI)-led investment and expansion. The stellar May and early June export figures of $87.7 billion are not transforming into jobs, especially for young Koreans. The gross domestic product (GDP) growth in the first quarter, th
