In February, South Korea's seasonally adjusted unemployment rate recorded a decrease to 2.7%, down from 2.9% in January, while remaining unchanged compared to the previous year, as reported by Statistics Korea. This improvement reflects ongoing trends in the labor market as the nation continues its economic recovery. The labor participation rate, which indicates the percentage of adults either working or actively seeking employment, rose to 63.7% in February—a slight increase from 63.6% observed the same month last year, according to the government's data.
This rise demonstrates a growing engagement of the adult population in the workforce. As for employment figures, approximately 28.18 million individuals were employed in South Korea in February, marking a 0.5% increase from the 28.04 million reported a year earlier by Statistics Korea. This uptick in employment is encouraging, particularly in the aftermath of the challenges posed by the pandemic. However, the number of unemployed individuals in South Korea has also seen a rise, increasing from 914,000 to 940,000 over the year leading up to February.
This nuance in the labor market indicates ongoing adjustments as industries adapt to new economic conditions post-COVID-19. Similar to many countries worldwide, South Korea faced significant spikes in unemployment during the COVID-19 pandemic, peaking at 5.4% in January 2021. Prior to the pandemic, the unemployment rate typically fluctuated between 3% and 4%, reflecting a more stable economic environment. Nevertheless, in the years following the pandemic, particularly in 2023 and 2024, South Korea's unemployment rate has frequently remained below 3%.
This situation has led to discussions among employers regarding "worker shortages", suggesting a potential mismatch between job availability and workforce skills. Looking ahead, the labor market outlook for South Korea in 2025 may reflect similar patterns. The Bank of Korea has projected that the nation's Gross Domestic Product (GDP) will grow by 1.5% year-over-year in 2025, building on a growth rate of 2% in 2024.
These forecasts hint at a gradual recovery, though the job market dynamics will continue to evolve in response to economic conditions..