This paper investigates the effect of both manufacturing-specific and neutraltechnological changes on employment in the Korean economy, focusing onlabor reallocation across sectors. Empirical findings of this paper are: (1)manufacturing-specific technological improvements are a key driving force oflabor reallocation from manufacturing to services in the long run, (2)manufacturing-specific technological improvements raise employment in bothsectors in the short run, and (3) the employment effect of neutraltechnological advances is positive but not significant. These results imply thatjobless growth is not likely to be induced by technological innovations inKorea.