FX.co ★ South Korea Jobless Rate Falls to 3% in Jan

South Korea’s seasonally adjusted unemployment rate fell to 3.0% in January 2026, down from a downwardly revised 3.3% in December, which had marked the highest level in a year. The number of unemployed stood at 1.21 million, an increase of 128,000 people, or 11.8%, from a year earlier, though 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, following a decline of 52,000 positions in December 2024, and it underscored continued weakness in the manufacturing and construction sectors. Youth unemployment declined for the 21st consecutive month, reflecting persistent structural challenges in the labor market for younger workers. Meanwhile, the labor force participation rate inched up 0.2 percentage point year-on-year to 63.6%, but slipped from 64.1% in December, suggesting a modest easing in overall workforce engagement.