International Finance

South Korea’s job creation in July marks low on the record

South Korea, South Korean finance minister, job creation, SMEs, South Korea economy, Societe Generale, Seoul, Eugene Investment and Securities, chief economist
In July, South Korea had created 5,000 new jobs, according to official data—which comes as a 'shock' to the finance minister

A report in May shows the job creation rate is below 72,000. According to FirstPost: “July’s unemployment rate was a seasonally adjusted 3.8 percent, up 0.1 percent from June. Youth unemployment remained high at 9.3 percent, unchanged from June, overshadowing President Moon Jae-in’s efforts on job creation particularly for young people.”

“First, the government will expand jobs in public sector, since tax revenue has been robust and the government has enough room to spend. Second, the administration is likely to adopt business-friendly policies to facilitate job creation,” said Lee Sang-jae, chief economist at Eugene Investment and Securities.

“However, these policies would be effective only in the short term, simply to prevent further deterioration.”

“From a common-sense standpoint, board members won’t be able to support a rate hike,” Oh Suk-tae, an economist at Societe Generale in Seoul said.”In addition to external factors including the Turkish crisis, the job data made the monetary decision clear. Based on the trend, my view is the data predicts negative jobs growth in the near future.”

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