Job Growth Hits 39-month Low in May

Employment growth last month hit a 39-month low, leading to skepticism over the Lee administration’s pledge to create 350,000 jobs.

According to a report by the National Statistical Office released yesterday, 23.939 million in Korea were employed in May, up a mere 181,000 from the previous year. This is the smallest rise since February 2005, when the number of jobs grew by merely 80,000.

March saw 184,000 new jobs and April 191,000, the first time for Korea to see the figure remain under 200,000 jobs for three straight months since the final three months in 2003.

In May, employment reached 60.5 percent, down two-tenths of a percentage point year-on-year.

Kim Jin-gyu, chief of the social statistics bureau at the office, said, “Employment growth has slowed due to surging oil prices and unfavorable economic conditions.”

The Strategy and Finance Ministry said that because of worsening economic conditions at home and abroad, the number of temporary and day workers also fell. Firms were also reluctant to hire because of economic prospects, it added.

The jobless population, however, fell to 753,000 in May, down 26,000 year-on-year. The unemployment rate also fell two-tenths of a percentage point from a year ago to three percent.

While the employment and unemployment rates decreased, the economically inactive population, or those capable of working but not searching for or unable to find work, increased by 248,000 from a year ago. Of the figure, those preparing to land a job jumped 69,000 from the previous year.

peacechaos@donga.com