Home > Economy > Korea’s Unemployment Rate Drops To 1 Million In January

Korea’s Unemployment Rate Drops To 1 Million In January

By February 16, 2017 at 6:14 am
Unemployment Falls Yet Non-Regular Workers Protest (Photo : Chung Sung-Jun/Getty Images)

The number of unemployment in Korea dropped to 1 million this January as compared to previous months. The number of unemployed people presented the smallest increase in 11 months as claimed by the Korean government.

The data has been presented by Statistics Korea and it also added that the unemployed people last month stood at 1,009,000 last month. The unemployment rate then has escalated to 3.8 percent, up 0.1 percentage point by year. As recorded, that was the highest rate since April of 2016 when it rose to 3.9 percent.

According to Korea Times, the number of unemployed people showed the significant increase among Koreans aged over 60 at 50,000. And for jobless people in their 30s, it grew by 34, 000. The good thing is for people aged between 15 and 29, the joblessness rate dropped by 0.9 percentage points.

 Even if there is a delayed economic collapse, jobs disappeared swiftly in the manufacturing sector. From January last year, it dropped by 160,000 stating seven consecutive months of construction. This has also been recorded as the severest decrease since July of 2009 when the rate went down by 173, 000.

The Korean government related this plunge of unemployment rate to reformation of the shipbuilding business including the slow-moving exports and the increasing demands from domestic works.

Three of the well-known shipbuilders in Korea have cut their employees by 7, 000 the past year and worst, these companies are looking to cut 14,000 more this year. These companies are Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries, and Samsung Heavy Industries.

Another factor that affected the change in the unemployment rate is the decreased in the exports rate. Though this did not directly affect the manufacturing sector, it still played a role in the difference of the unemployment rate as per Trading Economics.

On the positive side, the number of employed people in the education, health and welfare, accommodation, food, and construction sectors has increased significantly. However, the employment rate in the agriculture, finance and insurance, and transportation sectors have decreased.

Though the Korean government acknowledges that there is a decrease in the unemployment rate, it still continues to provide employment opportunities to jobless people.

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