Job Creation Falls to 40-Month Low
By Lee Hyo-sik
Staff Reporter
The number of new job offerings last month fell to the lowest level in three and a half years as businesses became more reluctant to hire new workers amid an increasingly pessimistic economic outlook as a result of soaring oil prices and a global economic slowdown.
According to the National Statistical Office (NSO) Wednesday, the number of employed totaled 24 million in June, up 147,000 from a year earlier, down from a 181,000 increase a month earlier.
It was the lowest level since February 2005 and fell short of the government's target of 200,000 new jobs. Early this month, the government revised down its job growth target for the rest of the year to 200,000 from an earlier 350,000, citing sluggish domestic demand and corporate investment.
By industry, the number of construction workers declined by 61,000 in June from a year ago, while those engaging in agricultural and fisheries sectors dropped 54,000. Workers in retail and wholesale, and manufacturing sectors fell 36,000 and 33,000, respectively.
But public and private service sectors added 33,000 new workers to their payrolls.
The number of the employed in their 20s fell by 90,000 from a year ago. But the number of workers in their 30s and 40s increased by 24,000 and 89,000, respectively.
The number of regular workers rose by 423,000 to 9 million from the previous year, but that of non-regular and temporary employees dropped 161,000 to 7.3 million as companies slashed non-essential workers amid the deteriorating business conditions.
``The number of new job offerings fell sharply last month as the stagnant private consumption hit the service sector hard, making more businesses unwilling to employ new workers. Also, the sluggish housing market has turned builders reluctant to carry out construction projects and hire workers,'' said Yim Jong-yong, director general of economic policy bureau at the Ministry of Strategy and Finance.
He said exporters are concerned about a drop in their overseas shipments because of a global economic slowdown, while domestic market-oriented firms are troubled by decreasing private spending.
``The government will continue to implement a range of policy steps as planned to encourage businesses to expand investment and create jobs. In particular, we will help the service industry strengthen its competitiveness, as well as provide necessary support to small businesses and venture firms that hire larger numbers of new employees,'' Yim said.
The jobless rate rose to 3.1 percent from 3 percent a month earlier, while the unemployment rate among people aged 15-29 stood at 7.8 percent, up from 6.9 percent in May.
The economically inactive population aged over 15 stood at 14.9 million last month, up 269,000 from a year earlier. The economically inactive population refers to people aged over 15 who are neither working nor looking for jobs because of housekeeping, childcare, old age, study, health problems or related reasons, according to the National Statistical Office.