South Korea’s unemployment rate remains low, signaling economic recovery

According to the National Bureau of Statistics of South Korea, the unemployment rate in South Korea remained low in October. This indicates that the labor market is growing despite rising interest rates.

According to the data, the unemployment rate remained at 2.8%, contrary to economists’ expectations of a slight increase in the unemployment rate to 2.9%, with 677,000 new jobs created year-on-year.

The Bank of Korea (BOK) has raised interest rates over the course of a year to reduce inflationary pressures, including a 2.5% rate hike in the July-October period. At the same time, easing measures to prevent the spread of COVID-19 has helped soften the impact of tight monetary policy and boost consumption, which is key to employment.

In addition, the weaker won is becoming another factor affecting the economy. As energy prices and other imports skyrocket, employers’ business costs also soar. At the same time, the spread of COVID-19 is increasing as winter approaches.

The Statistical Office reported that the number of jobs in the manufacturing sector increased by 201,000 year-on-year. The restaurant and accommodation industry recorded an increase of 153,000 jobs, while retail and wholesale trade recorded a decrease of 60,000 jobs in October.

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