US Markets
South Korea Unemployment Rates Declines to 2.7% in March
Despite Persian Gulf turmoils, South Korea's seasonally adjusted unemployment rate declined to 2.7% in March, down from 2.9% in February, striking a four-month low, reported the Ministry of Data and Statistics (MDS) on Tuesday.The economically active population, that is, citizens aged 15 or more and employed or seeking work, rose to 28.8 million in March, up from 28.6 million a year earlier.The number of unemployed persons in March fell 884,000, down from 993,000 in February, added the MDS.Despite the generally good overall employment numbers in March, some details of the South Korean worker picture "remain weak," said ING Think, an arm of the Dutch investment house.The decline in the March unemployment rate "for example, was partly due to workers exiting the labor market rather than to job growth," said ING Think. "Also, most of the job growth was concentrated in low-wage, low-skilled service positions and self-employment. By contrast, manufacturing and salary-based employment declined."While good-paying factory jobs became more scarce, the most jobs added in March were in the categories of eating out, accommodation, transportation, and information & communications, said ING Think."These jobs are mostly non-regular and low-wage, having a limited positive impact on household spending. We think this trend indicates subdued domestic demand," advised ING Think.The Middle East and related supply snags, including tight oil markets, are likely to worsen the South Korea employment picture in coming months, added ING Think."We are also concerned that supply disruptions lasting beyond two months could weaken labor market conditions across a broader range of industries. Petrochemical activity, including Naphtha Cracking Centers utilization rates, have already dropped to their lowest levels in March," said ING Think. "This type of enforced production slowdown is expected to become widespread and to start hurting employment in other sectors."
$^Kospi