Korea’s jobless rate stays pat at 3.1% in November
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South Korea’s unemployment rate stayed pat in November compared with the month before as gains in the manufacturing and hospitality sectors were offset by losses in the agrofisheries and retail segments, a government report showed Wednesday.
According to the report by Statistics Korea, the rate stood at 3.1 percent last month, unchanged from October and the year before. The seasonally adjusted unemployment rate for last month reached 3.4 percent, also flat from the 3.4 percent figure tallied for the previous month. The number of newly created jobs, however, dropped to 285,000 last month, from 348,000 new positions offered in October.
“Manufacturing continued to fuel growth, along with the hospitality sector, and communication and information technology services, but sharp losses in agrofisheries and to a lesser extent retail affected the job market last month,” said Sim Won-bo, head of the agency’s employment statistics division.
He said agrofisheries shed 168,000 positions last month from 124,000 jobs lost the month before, while sluggish economic conditions hurt small-time retailer jobs in the country. The official said the loss in agrofisheries was mainly due to rainy weather.
The manufacturing sector created 190,000 more jobs, with the hospitality sector and communication and information technology services adding a combined 182,000 positions.
The unemployment rate for people between the ages of 15 and 29 reached 8.1 percent in November, up from the 7.4 percent reading a month earlier, which was the lowest level reported since May 2013.
“The so-called labor underutilization indicator dipped to 10.3 percent last month from 10.5 percent in October, according to the report.”
The statistical office said the jobless rate for young people usually goes up toward the end of the year as there is a rush to seek employment. The jobless rate among young people has always been higher than the national average.
The latest report then showed the employment rate for people between 15 and 64, which is used by the Organization for Economic Cooperation and Development to measure employment, stood at 66.3 percent last month, up from 66.2 percent the month before.
The so-called labor underutilization indicator dipped to 10.3 percent last month from 10.5 percent in October, according to the report.
The indicator is based on guidelines made by the International Labor Organization and reflects the number of people who are underemployed and those who currently hold part-time jobs but want full-time work. It also counts unemployed people who have given up looking for work not by choice but due to other circumstances.
The finance ministry said unseasonable weather conditions adversely affected jobs created last month. “The amount of rainfall directly impacted hiring in certain sectors,” it said. “If agrofisheries are not calculated, more than 400,000 jobs were created.” Total precipitation hit 127.8 millimeters, the second highest reading since November 1973.
The ministry added that while the jobless rate for young people rose, the employment rate edged up 1 percentage point on-year to 41.8 percent, which is a positive development. For the future, it said exports may remain weak but a rise in domestic demand will help create new positions in the coming months.
Questions & Answers
Q.Which specific sectors experienced job losses in November?
Which specific sectors experienced job losses in November?
The agrofisheries sector shed 168,000 positions. Retail also saw losses, which particularly affected small-time retailers due to sluggish economic conditions.
Q.What was the main reason cited for the job losses in the agrofisheries sector?
What was the main reason cited for the job losses in the agrofisheries sector?
The official report indicated that the loss in agrofisheries was mainly due to rainy weather. The finance ministry also highlighted unseasonable weather conditions adversely affecting job creation.
Q.How did the unemployment rate for young people change in November?
How did the unemployment rate for young people change in November?
The unemployment rate for individuals aged 15 to 29 reached 8.1 percent in November. This was an increase from the 7.4 percent recorded the month before.
Q.What is the 'labor underutilization indicator' and how did it change?
What is the 'labor underutilization indicator' and how did it change?
The indicator reflects people who are underemployed, hold part-time jobs but want full-time work, or have given up looking for work. It dipped to 10.3 percent in November from 10.5 percent in October.