South Korea says domestic demand remains weak amid sluggish job market

[SEOUL] South Korea's domestic demand remains lacklustre due to a sluggish job market and tepid growth in household income, the finance ministry said on Friday.

In its monthly economic assessment report, the ministry noted youth unemployment among those aged 15-29 was 11.2 per cent in April, while the overall jobless rate was at 4 per cent.

The ministry added the economy faces uncertainties such as anticipated interest rate hikes by the Federal Reserve and potential changes in the trade environment.

It did not elaborate further on the risks.

The government will make an all-out effort to create quality jobs using the US$10 billion supplementary budget it proposed earlier this month, it said.

REUTERS