Job opening ratio drops to lowest since Asian Financial Crisis while youth exodus from manufacturing accelerates rapidly

South Korea’s labor market demand fell to its lowest level since the Asian Financial Crisis in November, with the ratio of new job openings to job seekers dropping to 0.43, according to data released Monday by the Ministry of Employment and Labor. While the number of employment insurance subscribers rose by 178,000 from a year earlier — driven largely by the health and welfare sector — unemployment benefit payments for the first 11 months of the year reached a record high of $7.8 billion (11.47 trillion won), surpassing the previous peak set during the pandemic in 2021.

The data revealed a sharp divergence in the manufacturing sector, where a headline decline of 16,000 jobs obscured a much deeper contraction of 31,000 domestic positions, which was partially offset by the influx of 16,000 foreign workers on E-9 and H-2 visas. The hiring freeze was most acute for younger demographics. The number of subscribers aged 29 and under plunged by 92,000, marking the steepest decline of any age group, while the construction sector recorded its eighth consecutive month of job losses as the industry’s downturn extended into late 2025.

South Korea’s labor market demand fell to its lowest level since the Asian Financial Crisis in November, with the ratio of new job openings to job seekers dropping to 0.43, according to data released Monday by the Ministry of Employment and Labor. While the number of employment insurance subscribers rose by 178,000 from a year earlier — driven largely by the health and welfare sector — unemployment benefit payments for the first 11 months of the year reached a record high of $7.8 billion (11.47 trillion won), surpassing the previous peak set during the pandemic in 2021.

The data revealed a sharp divergence in the manufacturing sector, where a headline decline of 16,000 jobs obscured a much deeper contraction of 31,000 domestic positions, which was partially offset by the influx of 16,000 foreign workers on E-9 and H-2 visas. The hiring freeze was most acute for younger demographics. The number of subscribers aged 29 and under plunged by 92,000, marking the steepest decline of any age group, while the construction sector recorded its eighth consecutive month of job losses as the industry’s downturn extended into late 2025.

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