Labor ministry reports July jobs gain, first double-digit increase in four months

The labor ministry said that 108,000 jobs were added in July from a year earlier, the first double-digit increase in four months, as service-sector hiring continued and job losses in manufacturing, construction and agriculture narrowed.

Service-sector employment rose by 295,000 jobs from a year earlier, with gains in health and social welfare, public administration, and finance and insurance. Professional, scientific and technical services still lost 44,000 jobs, though the decline narrowed. Manufacturing job losses narrowed to 68,000 on strong exports, while construction losses narrowed to 57,000.

The employment rate for people aged 15 and older was 63.3 percent, 0.1 percentage point lower than a year earlier, while the youth employment rate declined 1.6 points to 44.2 percent. The employment rate for people aged 15 to 64 rose 0.1 point to 70.3 percent. Labor-force participation was unchanged at 65 percent, and the unemployment rate rose 0.2 point to 2.6 percent. The number of young people classified as "resting" declined from a year earlier for a sixth consecutive month to 367,000.

Middle East tensions and worsening heat-wave conditions could weigh on employment.

The government plans to prepare and announce a youth employment recovery plan after consultations between relevant ministries. It will also identify measures to strengthen industrial vitality, train workers, expand jobs and startups, improve working conditions and build employment foundations in manufacturing, construction and agriculture.