South Korea’s jobless rate falls to record low, factory sector still shaky
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SOUTH Korea’s jobless rate fell in May to a record low, official data showed on Wednesday (Jun 14), indicating a still-robust labour market, although conditions were softer in the manufacturing sector amid slowing economic growth.
The latest employment report painted a brighter backdrop for the country, as it navigates external challenges from tighter monetary policy and weak demand in key trading partner economies.
South Korea’s seasonally adjusted unemployment rate dropped to 2.5 per cent in May from 2.6 per cent in April, the lowest since the data series began in June 1999, according to Statistics Korea.
The number of employed people rose by 351,000 from the same month a year earlier, compared with increases of 354,000 in the previous month and 1,135,000 in January 2022. That was the peak of the current employment growth streak that started in March 2021.
The finance ministry said the data showed that jobs growth remained at a satisfactory level, given high-base effects and the country’s population decline. It also noted the continued recovery in the services sector, and a softer decline of employment in the manufacturing sector.
By industry, health and social welfare workers increased by 166,000, followed by hospitality and catering services which gained 128,000 employees. The construction and manufacturing sectors lost 66,000 and 39,000 jobs, respectively.
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The job increase was led by people aged 60 and above, at 379,000; this offset declines in other age groups.
“Employment will likely continue its robust trend going forward, led by the face-to-face services sector, but a recovery in the manufacturing sector is expected to be delayed due to weak exports and facility investments,” said First Vice-Minister of Economy and Finance Bang Ki-sun as he presided over a policy meeting on job creation.
The data comes as other economic indicators from exports to factory production and retail sales point to South Korea’s sluggish growth, amid weakening demand at home and abroad on global monetary tightening.
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