Unemployment and jobs growth in South Korea are at their worst since the wake of the global financial crisis, new economic data has shown.
The unemployment rate has jumped to 4.2%, the highest since early 2010, and much greater than any economic forecasts predicted. Meanwhile, jobs growth slumped to just 3,000 in August, also the worst figure in more than eight years.
Moon, who came into office pledging to create jobs and raise incomes, has seen his popularity slide amid criticism that he’s hurting employment by aggressively increasing the minimum wage. While pay hikes planned for this year and 2019 are here to stay, finance minister Kim Dong-yeon said the government would consider adjusting some policies. He conceded that the jobs market wouldn’t improve much anytime soon.
Moon’s administration blames the fallout from corporate restructuring and the shrinking the working-age population for the problems in the labour market. Businesses counter that hiking the minimum wage 16% this year, with another rise of almost 11% to come in 2019, has made job layoffs inevitable. According to Bloomberg, small business owners in particular have shed workers.
The finance minister said economic policies that are geared toward wage-based growth are moving in the right direction. However, he added, the government also acknowledged the need for more communication and market analysis in order to gain trust from companies and the people.
The presidential office described the recent increase in unemployment as inevitable pain that accompanies a change in the structure of the economy, Yonhap News reported.
Source: Bloomberg
Unemployment and jobs growth in South Korea are at their worst since the wake of the global financial crisis, new economic data has shown.
The unemployment rate has jumped to 4.2%, the highest since early 2010, and much greater than any economic forecasts predicted. Meanwhile, jobs growth slumped to just 3,000 in August, also the worst figure in more than eight years.
Moon, who came into office pledging to create jobs and raise incomes, has seen his popularity slide amid criticism that he’s hurting employment by aggressively increasing the minimum wage. While pay hikes planned for this year and 2019 are here to stay, finance minister Kim Dong-yeon said the government would consider adjusting some policies. He conceded that the jobs market wouldn’t improve much anytime soon.
Moon’s administration blames the fallout from corporate restructuring and the shrinking the working-age population for the problems in the labour market. Businesses counter that hiking the minimum wage 16% this year, with another rise of almost 11% to come in 2019, has made job layoffs inevitable. According to Bloomberg, small business owners in particular have shed workers.
The finance minister said economic policies that are geared toward wage-based growth are moving in the right direction. However, he added, the government also acknowledged the need for more communication and market analysis in order to gain trust from companies and the people.
The presidential office described the recent increase in unemployment as inevitable pain that accompanies a change in the structure of the economy, Yonhap News reported.
Source: Bloomberg
