Layoffs Exceed New Employees in Dec.
By Lee Hyo-sik
Staff Reporter
Companies dismissed more workers than were hired in December for the first time in five years and analysts expect more tightening of the job market in coming months.
The National Statistical Office (NSO) reported Wednesday that the number of employed totaled 23.24 million last month, down 12,000 from a year earlier, marking the first annual job loss since October 2003 when the nation lost 86,000 jobs following the bursting of the credit card bubble.
The Lee Myung-bak administration had initially vowed to create 350,000 jobs early last year but later slashed its job growth target to 200,000, citing sluggish domestic demand and corporate investment. It then lowered the figure further to 100,000 for this year.
But in December, the world's 13th largest economy lost more jobs than it generated, joining the United States and scores of other advanced economies grappling with the ongoing global credit crunch and economic slowdown.
The Korean economy generated 315,000 jobs in June last year but since then, the number has been on a downward curve. It fell below 200,000 in March and below 100,000 in October and November.
``The domestic labor market has frozen as businesses have become unwilling to increase payrolls, while dismissing existing workers to cut costs,'' an NSO official said.
He projected the job market will worsen further in the coming months as the economy will continue to falter on falling exports and stagnant domestic consumption.
By industry, the number of construction workers declined by 45,000 in December from a year ago, while those in the manufacturing, retail and wholesale sectors fell 99,000 and 65,000, respectively. But the public and private services sectors added 221,000 new workers to their payrolls.
The number of people employed in their 20s and 30s fell by 128,000 and 109,000 from a year earlier, respectively. But the number of workers in their 40s and 50s increased by 46,000 and 185,000.
The number of regular workers rose by 318,000 to 9.1 million from the previous year, while that of non-regular and temporary employees decreased by 232,000 to 7.1 million.
The jobless rate rose to 3.3 percent from 3.1 percent a year ago, while the unemployment rate among people aged 15-29 stood at 7.6 percent, up from 7.3 percent.
The economically inactive population aged over 15 totaled 15.8 million last month, up 424,000 from a year ago, as more people gave up searching for jobs.
The economically inactive population refers to people aged over 15 who are neither working nor looking for work because of housekeeping, childcare, old age, study, health problems or other reasons, according to the statistical office.