Korea's job growth extended for 15th month in May
A jobseeker consults with an official at a regional job center in Seoul, April 17, 2021. Yonhap
Korea reported job additions for the 15th consecutive month in May as economic recovery momentum has been extended despite heightened global uncertainty, data showed Wednesday.
The number of employed people came to 28.49 million last month, up 935,000 from a year earlier, according to the data compiled by Statistics Korea.
The May reading was higher than a year-on-year increase of 865,000 in April and also marked the largest job additions in 22 years for any May.
The country has reported job growth every month since March last year as the job market improved amid the economic recovery.
"Employment in in-person services increased amid the lifting of virus curbs. The country has extended job recovery momentum," Kong Mi-suk, a senior Statistics Korea official, told reporters.
The Korean economy has extended its recovery momentum, but it also faces heightened economic uncertainty due to the protracted war between Russia and Ukraine, and tighter global monetary policy.
On April 18, the country lifted most coronavirus restrictions, except the mask mandate, in a major step toward returning to pre-pandemic life.
Job data pointed to overall improvements in the labor market, but around half of the May job additions were led by an increase in state-arranged jobs for senior citizens.
The employment rate of people aged 15 and older rose 2.3 percentage points year-on-year to 69.2 percent last month. It was the highest for any May since January 1989.
The number of economically inactive people ― those who are neither working nor actively seeking jobs or people outside the labor force ― reached 15.87 million in May, down 480,000 from a year earlier, and marked the 15th consecutive month of a year-on-year fall.
The jobless rate fell 1 percentage point year-on-year to 3 percent last month, the lowest for any May since June 1999. The number of unemployed people declined 259,000 to 889,000.
By sector, the accommodation and restaurant business reported job growth in May after two straight months of falls. The sector, hit hardest by the COVID-19 pandemic, saw the number of employed people rise 34,000 year-on-year in May.
The wholesale and retail sector reported a drop of 45,000 in jobs amid an increase in non-contact business operations, the agency said.
The number of employed people in the health and social welfare services sector grew 178,000 and that in the public administration segment rose 99,000.
The manufacturing sector, the backbone of the economy, reported a year-on-year increase of 107,000 job posts amid robust exports.
By age, job posts for those aged 60 and older grew the most, with 459,000 new positions, due to a rise in state-arranged short-term jobs.
The number of permanent workers grew 900,000 year-on-year in May, and that of temporary workers advanced 79,000. But the number of day laborers fell 91,000, marking the 13th straight month of decline.
Last month, the Bank of Korea (BOK) forecast the number of employed people will increase 580,000 this year, larger than its February estimate of 280,000.
Last year, the number of employed grew 370,000.
The BOK expects Asia's fourth-largest economy to expand 2.7 percent this year, while its inflation outlook stands at 4.5 percent.
The Organization for Economic Cooperation and Development (OECD) cut its 2022 growth forecast for Korea to 2.7 percent, while sharply raising its inflation projection to a 24-year high of 4.8 percent. (Yonhap)