Manufacturing jobs up, but numbers may defy reality

By Kang Seung-woo

The number of jobs in the manufacturing industry reached a seven-year high last month on the back of strong exports, the national statistical office said Tuesday. It was the 14th consecutive month that the job total managed an annual increase, the longest streak since the 22-month run that ended in February 2001, when the country was recovering from the Asian financial crisis.

The 4.14 million people hired by local manufacturers last month represented a 6.7 percent annual increase. The total was the highest since the same month of 2004 when 4.16 million were employed in the sector. The number of new jobs created every month has exceeded 20,000 for the eighth consecutive month, according to the government figures.

“There has been a steady gain in people working in the manufacturing businesses. Following the recent global financial crisis, exports have done well in comparison to the service sector and this raised demand for new workers,” the statistical office said.

The facility operation rate of manufacturers were measured at 84.8 percent in January, the highest mark since the government began keeping data in 1980.

Observers say it would be premature to take the raw numbers and declare that the manufacturing sector is firing on all cylinders again.

“The gain is fueled by more jobs being created by both conglomerates and smaller-sized companies, but there is a chance it may not last,” a Seoul-based research fellow said.

“It is not enough to reach the conclusion that rising employment in the manufacturing companies means a structural change in the industry itself,” said an official of the Ministry of Strategy and Finance.

They said that the jobs offered by local manufacturers have not topped 4.5 million since 1997 and it has remained around 4.15 million in recent months. In 1991, the employment in the industry reached a record 5.15 million.