South Korea’s Jobless Rate Climbs to 16-Month High
South Korea’s jobless rate rose to the highest in 16 months in November as fewer people found work in manufacturing, construction, shops and restaurants.
The unemployment rate climbed to 3.3 percent, the highest since July 2007, from 3.1 percent in October, the National Statistical Office said today in Gwacheon. The number of people employed increased by 78,000 from a year earlier, from 97,000 in October. November’s gain was the lowest since Dec. 2003.
Policy makers are pumping funds into banks, lowering income taxes, boosting public spending and cutting borrowing costs to limit the fallout from the global recession. The economy faces increased “downward risks” as the slump hurts production, domestic demand and exports, the finance ministry said last week.
“The local and external environment are far from favorable for the job market,” said Ryu Seung Sun, an economist at HMC Investment Securities Co. in Seoul. “Even if the economy picks up in the second half of next year as the government forecasts, it’ll take time for companies to start hiring new people compare car insurance prices.”
The economy grew 0.5 percent in the third quarter from the previous three months, the weakest pace since 2004, as exports fell and consumer spending stagnated.
South Korea’s central bank lowered its benchmark interest rate to 4 percent on Nov. 7, the third reduction in four weeks.
The number of people employed in the manufacturing sector fell 1.4 percent in November from a year earlier and jobs at retail outlets, hotels and restaurants dropped 1.4 percent, today’s report showed. The number of people employed in the construction sector declined 1.6 percent from last year.
The nation’s unadjusted jobless rate was 3.1 percent, compared with 3 percent in October.