Korea Labor Institute Sees Employment Rate Falling 0.2 Points to 62.7% in 2026

3 articles · Updated · en.sedaily.com · Aug 8

62.7% is the employment rate the Korea Labor Institute projects for this year, down 0.2 percentage point, while unemployment is seen rising 0.1 point to 2.9%—the first employment-rate decline since 2020.
103,000 is the forecast increase in employed people, roughly half last year’s 193,000, even as headline growth stays in the 3% range on a semiconductor boom.
The institute said chip-led growth is not translating into jobs because semiconductors are capital-intensive, while domestic demand and non-chip manufacturers are being squeezed by high oil prices, a weak won and high interest rates.
That mix points to a rare simultaneous drop in employment and rise in unemployment—seen only four times since 2000—and sharpens concern over worsening prospects for young job seekers.
The report argues Korea needs stronger job creation in services and other domestic-demand sectors, reviving calls for a long-stalled service-industry law and broader deregulation to break 'jobless growth.'