Employment and Construction Slump

Last month, there were 400,000 employed in Jeju, a decrease of 8,000 compared to the same month last year.


The employment rate dropped to 69%, a decline of 1.7 percentage points.

Since October, following a stable September, there has been a three-month consecutive decrease in the number of employed.

This three-month continuous decline in employment is the first since February 2021, during the peak of COVID-19, nearly two years and ten months ago.


INTERVIEW
An Ji-hye / Jeju Office, Statistics Korea
By industry, the decline occurred in construction, manufacturing, and agriculture, forestry, and fisheries, influenced by the construction industry's slump. However, the employment rate was high in the fourth quarter of 2022, so a base effect is also considered.

Along with the decrease in employment, the construction industry is also facing a recession.

In November, the area of construction started and permits granted both plummeted by more than 50% compared to a year ago.

Despite an increase in construction orders, primarily in the public sector, the housing market is in severe distress, with unsold homes exceeding 2,500 units, a record high.


The recent increase in tourists and improvement in consumer spending are not enough to counteract the decline in employment and construction, hindering the local economic recovery.

INTERVIEW
Kim So-yeon / Research Officer, Bank of Korea
The recent Jeju economy shows a slight alleviation in the sluggish trend, with an increase in tourists and a modest improvement in consumption. However, the decline in employment and the slump in construction are restraining the recovery.

Amid prolonged high-interest rates and high inflation, the deepening local economic woes are due to unresolved declines in employment and the construction slump.