South Korea’s August unemployment rate hits record low

South Korea’s unemployment rate in August fell to its record low of 2.8%, marking its third straight month of decline and suggesting that the economy is on track for recovery.

The jobless rate was the lowest since data was published in June 1999, down from July’s jobless rate of 3.3%. Jobs were mostly added in construction, transportation and warehouses, and healthcare and social services, according to data from Statistics Korea. 

However, labour conditions in the key manufacturing sector remained weak, with the number of employment falling to an eight-year low of 4,289,000, which is 76,000 less year-on-year. 

“There were less jobs in auto and trailer manufacturers, while jobs decline in textile product makers worsened. Jobs growth in electronics-related manufacturers also turned negative,” a statistics bureau official told reporters, according to Reuters.

There were also 38,000 less jobs in accommodation facilities and restaurants, and jobs in the retail sector continued to fall, declining by 113,000 jobs year-on-year. 

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Meanwhile, the number of part-timers increased, with people working less than 36 hours per week — mostly in lower paying and less desirable roles — rising 64.5% year-on-year, while those working longer hours fell 17.1%.