South Korea Jobless Rate Falls to 3-Month Low

South Korea’s seasonally adjusted unemployment rate edged down to 2.9% in February 2026 from 3% in January, marking its lowest level in three months. The economy added 234,000 jobs during the month, the fastest year-on-year increase in five months, although declines in youth employment as well as in the manufacturing and construction sectors persisted. This was the largest job gain since the 312,000 increase recorded in September 2024, bringing total employment to 28.413 million. Meanwhile, the number of unemployed rose to 993,000 in February, up 54,000 or 5.7% year-on-year. The labor force participation rate also ticked higher to 64% from 63.6% in January.

South Korea’s seasonally adjusted unemployment rate declined to 3% in January 2026 from a downwardly revised 3.3% in December which was the highest in a year. The number of unemployed rose to 1.21 million, up 128,000 people, or 11.8%, from a year earlier, but slightly below December’s 1.22 million. The economy added 108,000 jobs in January, lifting total employment by 0.4% year-on-year to 27.99 million. This was the slowest pace of job growth in 13 months after employment contracted by 52,000 in December 2024, underscoring persistent weakness in manufacturing and construction. Youth unemployment fell for a 21st consecutive month, highlighting ongoing structural challenges in the labor market for younger workers. Meanwhile, the labor force participation rate edged up 0.2% year-on-year to 63.6% but eased from 64.1% in December, pointing to some softening in workforce engagement.

South Korea’s seasonally adjusted unemployment rate jumped to 4% in December 2025, extending its rise for a third straight month and reaching its highest level in nearly five years. Unemployment typically rises in December as cold weather and icy conditions slow outdoor work. Seasonal pauses in construction, agriculture, fisheries, and forestry, along with the end of government-funded job programs, also contribute. The number of unemployed people rose to 1.22 million, up 103,000 or 9.2% year-on-year. Despite the weaker labor backdrop, the economy added 168,000 jobs, a 0.6% increase from a year earlier, bringing total employment to 28.2 million. However, that figure fell sharply from 29.71 million in November, highlighting recent labor market softening. The labor force participation rate stood at 64.1%, up 0.2% from a year ago but down from 64.8% in the prior month, signaling reduced workforce engagement at year end.