SEOUL, Jun 14 (Reuters) – South Korea’s unemployment rate fell to a record low in May, official data showed on Wednesday, suggesting a still robust labor market, although conditions in the manufacturing sector softened amid a slowdown economic growth.
The employment report provides a better background for the country as it addresses external challenges of tighter monetary policy and weak demand in key trading partner economies.
The country’s seasonally adjusted unemployment rate fell from 2.6% in April to 2.5% in May, the lowest since the data series began in June 1999, according to Statistics Korea.
The number of people employed increased by 351,000 from the same month a year earlier, compared to increases of 354,000 in the previous month and 1,135,000 in January 2022, the peak of current employment growth that began in March 2021.
The Treasury Department said data showed job growth remained at a satisfactory level given the country’s high base effects and population shrinkage, pointing to the ongoing recovery in the services sector and a softer decline in manufacturing employment.
Manufacturing, health care and social welfare saw employees increase by 166,000, followed by hospitality and catering services which gained 128,000 employees. Construction and industry lost 66,000 and 39,000 jobs respectively.
The increase in jobs was led by people aged 60 and over, an increase of 379,000, offsetting the decline in other age groups.
“Employment is likely to continue its robust trend in the future, 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 facilities investment,” said Deputy Finance Minister Bang Kisun, while chairing a policy meeting on job creation.
The data comes as other economic indicators, from exports to factory production and retail sales, point to the country’s sluggish growth amid declining domestic and international demand due to global monetary tightening.
Reporting by Jihoon Lee; Edited by Lincoln Feast and Shri Navaratnam