Jobless Rate for January Hits 11-month High of 3.9 Percent

While some recent data reflects signs of an economic rebound, the job market has continued to deteriorate.

The jobless rate among youths rose for four months in a row, and the number of people who have given up their job search also increased.

According to National Statistical Office`s report on the nation`s hiring condition for January, the total number of people out of work was 904,000, up 50,000 from the same month last year. The jobless rate rose 0.2 percent to 3.9 percent, the highest level in 11 months.

The jobless rate for those aged 15 to 29 went down to 8.7 percent from the same month last year. The rate, however, has continuously risen from the lowest level of 6.7 percent in September, recording 7.2 percent in October, 7.3 percent in November, and 8.5 percent in December, the highest level since last March (8.8 percent). The jobless rates for the 30`s and 40`s were 3.4 percent and 2.5 percent, respectively, up 0.5 percent and 0.4 percent compared to the same month last year.

136,000 people abandoned their job search, and the number rose three consecutive months. The number rose by 12,000 compared to the same month last year.

The NSO found the reason for the job market deterioration as the insufficient supply of jobs compared to the demand from university students and the to-be-graduates this spring, and the seasonal decrease of jobs from the agriculture, forestry, fishery, and construction industries.

Chang-Won Kim changkim@donga.com