FX.co ★ South Korea Jobless Rate Unchanged at 2.8%

South Korea’s seasonally adjusted unemployment rate was 2.8% in May 2026, unchanged from April. The economy shed 40,000 jobs during the month — the first decline in employment in 17 months amid ongoing economic uncertainty — bringing total employment down to 29.120 million. Job creation had exceeded 200,000 in both February and March before slowing sharply to 74,000 in April.

The May decline in employment was driven by continued weakness in mining & manufacturing and construction. Employment also fell in agriculture, forestry & fishing, as well as in wholesale & retail trade and accommodation & food services. By contrast, job gains were recorded in electricity, transport, communication & finance, and across business, personal, and public services.

The youth employment rate dropped to 43.8%, down 2.4 percentage points from a year earlier. At the same time, the number of unemployed rose to 878,000 in May, an increase of 25,000, or 3.0%, year-on-year. The labor force participation rate edged down to 62.5%, from 62.7% in April.