A cashier works at a convenience store in Seoul, in this file photo taken Jan. 15, 2023. (Yonhap)
SEOUL, Feb. 15 (Korea Bizwire) – South Korea added the lowest number of additional jobs in nearly two years in January, with the growth slowing for the eighth consecutive month amid economic uncertainties and higher borrowing costs, data showed Wednesday.
The number of employed people stood at 27.36 million last month, up some 411,000 from a year earlier, according to the data compiled by Statistics Korea. It marked the lowest on-year growth since the 314,000 on-year gain tallied in March 2021.
Despite posting growth for the 23rd consecutive month, South Korea’s on-year gains in additional jobs have been falling since reaching 935,000 in May 2022.
The January figure marked a decrease from 509,000 jobs added in December.
South Korea’s jobless rate moved down 0.5 percentage point on-year to 3.6 percent in January, the data showed.
The unemployment rate for those aged between 15 and 29 moved down 0.1 percentage point on-year to 5.9 percent.
The overall growth was primarily led by those aged 60 and older, with 400,000 jobs being added in the age group.
People in their 50s and 30s took up 107,000 and 27,000 of the new jobs, respectively, the data showed.
The number of jobs for those in their 40s and 20s, on the other hand, moved down 63,000 and 43,000, respectively, over the period.
Last month, new jobs were mainly created in the welfare, accommodation, restaurant and communication industries, the data showed.
Jobs from the retail, wholesale, transportation and agricultural sectors, on the other hand, lost ground.
An official from Statistics Korea holds a press conference in the central city of Sejong on Feb. 15. 2023. (Yonhap)
The latest performance came amid the country’s aggressive monetary tightening move aimed at taming inflation. A hike in borrowing costs typically weighs down employment as businesses and households cut their spending.
Last month, the Bank of Korea raised the benchmark seven-day repo rate from 3.25 percent to 3.5 percent, the highest level since 2008. It was the seventh straight rate increase since April last year, the longest span of tightening.
In 2022, South Korea added 816,000 jobs on-year, driven by the post-pandemic recovery. The finance ministry said it expects job growth to reach only 100,000 in 2023 due to the slowing economy and the declining population.
“Along with the base effect following an exceptional boom in the job market in 2022, there are also downward factors including the slowing economy and the decrease in the labor force,” the Ministry of Economy and Finance said in a separate report released in the day.
South Korea’s exports especially logged a steeper on-year decline in January on weak demand for semiconductors and other items, deepening concerns over the country’s economic growth momentum.
Accordingly, the country’s job growth is expected to slow by a wider margin starting next month, it added. The unemployment rate, however, is expected to remain nearly flat considering the decreasing population.
The ministry said the number of South Korean aged from 15 to 64 fell 277,000 from a year earlier in January.
(Yonhap)
