Strong exports power S.Korea’s manufacturing job growth

South Korea’s job increases rebounded in April with growth in the manufacturing sector at a 17-month high on strong exports amid the semiconductor industry’s recovery, although the number of jobless rose to the largest in more than three years.

The number of employed rose 261,000 last month from a year earlier as the payroll increased 100,000 in the manufacturing sector, the largest since November 2022, according to Statistics Korea data on Friday. The healthcare and social welfare service sector added 93,000 jobs and the information and communication industry raised 68,000 jobs.

In March, the total payroll in Asia’s fourth-largest economy grew 173,000 after gaining 329,000 and 380,000 in February and January, respectively.

“The employment is expected to stay healthy on the recent recovery in the economy led by exports and signs of revival in domestic demand despite the sustained risk factors such as sluggish construction orders,” said the finance ministry after the data was released.

South Korea’s exports rose 13.8% to $56.3 billion in April as overseas sales of semiconductors, the country’s top export item, surged 54.5%, customs data showed on Thursday.

HIGHER EMPLOYMENT RATE OF WORKING-AGE POPULATION

The employment rate of the working-age population, or those aged 15 to 64, rose 0.6 percentage point to 69.6% in April on-year, the highest since November last year.

The rates of those in their 20s and 30s increased by 0.8 percentage point and 1 percentage point, respectively.

On the other hand, the number of unemployed grew by 81,000, the largest since February 2021, extending its rising streak to a sixth straight month. The unemployment rate grew 0.2 percentage point to 3% in April from a year earlier.

The business support and rental service sector lost 66,000 jobs, while the education service industry shed 49,000 jobs. The wholesale and retail sector lost 39,000 jobs.

The number of jobless in the 60s increased by 39,000, although the age group saw a payroll number growth of 292,000.

“The numbers of both employed and jobless in the 60s grew at the same time as the population in the age group rose,” said a senior officer of the statistics office.

Write to Kyung-Min Kang at kkm1026@hankyung.com
 
Jongwoo Cheon edited this article.