Unemployment Rate, 2% after the Laps of 4 Years And Six Months

An unemployment rate was fallen off to 2% after the lapse of 4 years and six months. According to ‘employment trend as of May 2002’ reported by Korea Customs Service on June 17, total number of unemployed persons of May decreased by 4,6000 people to 66,1000 people17 over April, and the unemployment rate was off 0.2% to 2.9%.

It’s the first time that the unemployment rate decreased to 2% after October (2.1%) and November (2.6%), 1997 from a financial crisis. A participation rate of economic activities of May increased to 62.2% and was returned to the average of 1997 (62%). Also, total unemployed persons were 22,223,000 persons increased by 0.7% over the last month.

Jang Gyeong-se, an assistant manager of social statistics, Korea National Statistical Office said ”Because employees in agricultural and fishing industries(4.6%) increased for busy farming season and employees have increased in the field of public service industries (0.8%) and construction due to economic recovery and World Cup.

Unemployment rate has decreased, but full-time employees decreased by 0.3% to 47.6% over the last month and temporary employees and daily-based employees increased by 0.4% and 0.1% to 34.6% and 17.9% respectively. Employment condition of employees has been worse.

Only in 30’s, unemployed persons increased by 3,000 persons, but unemployed persons and unemployment rate in all ages decreased. Especially, unemployment rate in 10’s and 20’s decreased by 3.3% and 0.4% to 9.2% and 6.1% over April.

Long unemployed persons more than 12 months were 19,000 persons similar as the last month. Among non-economic activities population, the give-up persons for employment decreased by 9.6% to 66,000 persons over the last month.

Taking out the seasonal factors, the seasonality unemployment rate was 3.1% same as the last month. According to the standard of OECD, total unemployed persons and unemployment rate were 702,000 persons and 3.1% respectively.

sanjuck@donga.com