Business Maverick: South Korea’s Unemployment Rate the Lowest Since 2013

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Business Maverick: South Korea’s Unemployment Rate the Lowest Since 2013 By Bloomberg

The Asian country’s jobless rate fell to 3.1%, the lowest since November 2013, while the number of employed rose by 452,000 from a year earlier, the biggest increase since March 2017, data from the statistics office showed Wednesday.from global trade tensions and prolonged weakness in tech demand, which are hitting capital investment and hiring, particularly in manufacturing.

“The data for August last year was bad, but even taking in the base effect, the job figures are a surprise,” said Park Chong-hoon, an economist at Standard Chartered Bank in Seoul. “The loss in manufacturing jobs eased, making me question if this is a sign of the economy bottoming out. We’ll have to see forthcoming data.”

Finance Minister Hong Nam-Ki said in a government meeting Wednesday that the August jobs data is “very encouraging and meaningful,” and that the government would put in “all policy efforts” to extend the improvement. Still, the jobs data for August mask continued weakness in broad hiring. Those aged 60 and above accounted for 391,000 new jobs, while employment declined among the 40-49 age group. The elderly have benefited most from government efforts to create jobs.

Manufacturers shed 24,000 jobs in August, extending more than a year-long decline in employment, although the pace of decline slowed from previous months. The retail and wholesale sector lost 53,000 jobs, while the social services sector added 174,000 jobs.

 

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