11-Year High
South Korea’s unemployment rate increased by 0.4 percentage points from a year ago to 3.6 percent in September this year.
When it comes to September, this percentage is an 11-year high. The number of unemployed persons increased by approximately 120,000 to 986,000 or so, whereas the number of newly employed persons dropped to a four-month low of 267,000 from 387,000 recorded in the previous month. The youth unemployment rate of those aged between 15 and 29 was 9.4 percent, 1.5 percentage points higher than a year earlier. This figure is an all-time high for September since records began.
These unfavorable conditions are likely to continue for the time being. Samsung Electronics decided to stop producing the Galaxy Note 7 on Oct. 11, which is likely to lead to layoff by partner firms, as is the case with the strike currently underway in Hyundai Motor Company.
The quality of employment is far from favorable, too. Food service and lodging accounted for 38.2 percent of those hired last month but employment by businesses in these sectors can be affected by the Kim Young-ran Act put into effect on Sept. 28. The number of those working for less than 36 hours a week increased by 3.8 percent from a year ago, while the number of those working for at least 36 hours per week rose by no more than 0.4 percent.
Another problem is an increase in the number of self-employed people. Specifically, it rose by 86,000 year on year to 5.679 million, showing the highest rate of increase in four years. This has to do with a large number of people having no other choice but to do so in the wake of restructuring in major industries. Besides, South Korean shipbuilders, steel makers, electronics manufacturers and the like are relocating to China one after another with the current economic recession lingering.