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3 Percent Unemployment Ratio Is Like Empty Vessel

Posted May. 09, 2002 09:57,   


Unemployment ratio in March recorded 3.4 percent and it dropped to 3 percent line for the first time after economic crisis, however, it is pointed out that it is limited to increase in working population.

Korea Labor Research Institute stated on 8th that increasing rate of working population was only 1.4 percent in 2001 as compared to the previous year, however, it started increasing from last quarter (October~December), 2001, and it rapidly increased this year, therefore, workers in March increased to 795,000 (3.8 percent) as compared to the same month last year.

However, sectors in which new workers joined is concentrated in the field of public and private service, whole sale and retail, food and lodging, construction, etc, therefore, it is analyzed that real contents of job is not better than diagram which is expressed in numbers.

In 1/4 quarter this year, workers increased by 405,000 in private and public service industry, △ 203,000 people in whole sale∙ retail and food∙ lodging field △174,000 people in construction industry, on the contrary, 28,000 people decreased in manufacturing field, as compared to the same period last year.

If we see workers according to payment, among new worker in 1/4 quarters, 131,000 people are in regular jobs, 254,000 are in daily jobs and 220,000 in temporary jobs.

108,000 (62.1 percent) of new workers in construction industry were daily wage workers and 134,000 people (33.1 percent) of private and public service field were in temporary jobs.

KLRI said, “ temporary and daily jobs is given much weightage among new workers which implies that it is limited to lead steady employment, although efficiency by measures for unemployment and development in domestic field following early progress of budget contributed highly”.

Related to this, participation rate in economic activity (ratio of workers employment and unemployment rate to possible population of productive activity) was above 62 percent before IMF crisis and it is still 61 percent in spite of recovering economy and fall in unemployment rate, therefore it is analyzed that substantial improvement is not completed.

KLRI concerned prospected, “export should recover full scale so that employment can be increased steadily ”and “employment in manufacturing field and related industry can start from latter this year (July~December) when trend of recovering export is visible”.

Jin Lee leej@donga.com