Job growth slows in March amid upsurge in COVID-19 cases

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South Korea reported job additions for the 13th consecutive month in March, but employment growth slowed from the previous month as positions at in-person services were hit by the upsurge in COVID-19 cases, data showed Wednesday.

The number of employed people came to 27.75 million last month, up 831,000 from a year earlier, according to the data compiled by Statistics Korea.

The number of employed people has increased every month since March last year. But the March tally was lower than a year-on-year increase of 1.14 million in January and 1.04 million in February.

The statistics agency said the trend of job growth has been extended, but uncertainty about the job market remains high.

South Korea's economy has been on a recovery track on the back of robust exports, but it has faced heightened economic uncertainty amid the fast spread of the Omicron variant and surging energy costs caused by Russia's invasion of Ukraine.

Job data pointed to overall improvements in line with the economic recovery, however, employment in face-to-face services segments, such as accommodation and retailers, declined amid the Omicron wave.

The employment rate of people aged 15 and older rose 1.6 percentage points year-on-year to 61.4 percent last month. It marked the highest rate for any March since the statistics agency began compiling related data in 1982.

The number of economically inactive people ― those who are neither working nor actively seeking jobs or people outside the labor force ― reached 16.6 million in March, down 277,000 from a year earlier. It marked the 13th consecutive month of a year-on-year fall.

The jobless rate fell 1.3 percentage points to 3 percent last month, while the number of unemployed people declined 342,000 to 873,000.

By sector, the accommodation and food services segment reported job losses last month after three straight months of year-on-year gains. The sector saw the number of employed people fall 20,000 in March.

The wholesale and retail sectors also reported a 32,000 drop in jobs.

The number of permanent workers grew 811,000 in March, and that of temporary workers rose 166,000. But the number of day laborers fell 172,000, marking the 11th straight month of decline.

The Bank of Korea forecast the number of employed people to increase 280,000 this year. (Yonhap)