S. Korea reports biggest job growth in nearly 7 yrs in April

[Graphics by Song Ji-yoon]

South Korea’s job growth in April accelerated to the fastest pace in nearly seven years after expanding on year for a second month in a row in the latest sign that the country’s job market is on a steady recovery path backed by a rebound in exports and domestic demand.

According to data released by Statistics Korea on Wednesday, the number of employed totaled 27.21 million in April, up 652,000 from a year ago. It is the largest job growth since 670,000 in August 2014.

The number of employed dropped for 12 straight months from 195,000 in March last year to 473,000 in February this year because Covid-19 had taken a big toll on the local job market. Korea reported its first job growth of 314,000 in 13 months in March.

Chung Dong-myung, head of social statistics planning at Statistics Korea, attributed to the strong recovery in the job market to the rebound in domestic output and spending, as well as robust exports with eased social distancing rules. Also the on-year surge was partly owed to the dismal job market condition in the same month last year when the country was hit hard by Covid-19.

The job figure added 68,000 from the previous month in April, gaining on month for three months in a row.

Chung said both on-year and on-month growth suggests that the job market of Asia’s fourth largest economy is on the steady recovery path.

Finance Minister Hong Nam-ki also agreed that the recovery in the country’s job market has become more evident.

By age, individuals aged 60 and over saw the biggest job growth of 469,000 in April, followed by 20s with 132,000, and 50s with 113,000. Those in their 30s and 40s, however, lost jobs by 98,000 and 12,000, respectively.

The number of employed increased 9,000 in the manufacturing sector in April from a year ago, marking the first growth in 14 months. The service industry added 507,000 jobs, extending the winning streak for the second straight month.

Healthcare and social welfare service sector gained 224,000 jobs in April, followed by construction 141,000 and transportation and warehousing 107,000.

The accommodation and restaurant sector hit hardest by Covid-19 also gained 61,000 jobs in April versus 28,000 loss in March, marking the first growth in more than a year.

The wholesale and retail industry, meanwhile, lost jobs by 182,000 in April, association and group-led business, repair, and other personal service sector 30,000, and arts, sports, and leisure-related service sector 11,000.

The number of full-time workers increased 311,000, temporary workers 379,000, and day-to-day laborers 38,000.

There were a total 403,000 workers on temporary leave in April, down 1.08 million from a year ago.

The employment rate for those aged 15 years and older rose 1 percentage point to 60.4 percent from the same period a year ago. Employment rate surged in all ages, the first time since January 2018.

The figure for those aged 15 to 64 – the standard of Organization for Economic Cooperation and Development – also jumped 1.1 percentage points to 66.2 percent.

A total 1.1 million people were unemployed in April, down 25,000 from a year earlier. Jobless rate fell 0.2 percentage point to 4 percent, data showed.

The unemployment rate, however, for those in their 20s rose 0.9 percentage point to 10 percent in April from a year ago.

Economically inactive population that are neither working nor actively seeking jobs fell 324,000 to 16.67 million in April, falling for a second month. It was the biggest drop in seven years, data showed.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]