As of this year, South Korea is projected to have an employment rate that has grown most within 12 years time. It only shows that the labor market of the country is showing signs of a full recovery as the growing rate. In January, the employment rate has reached over 24,700,000 that were higher of about 700,000 on the same month as recorded last year. This rate was said to be the largest increase within a monthly period since March of 2002 when the country’s job creation has reached over 800,000.
The Growth Rate
The growth pace of the employment rate in the country has accelerated since May of 2013 when there were 265,000 jobs added before it rose to over 500,000 within 2 months straight until December. Though there were negative issues in accordance to the youth employment rate in the recent years, the rate has a positive picture from last year to January this year. There was about 74,000 increase in the jobs for people aging 15 to 29 in January last year, which was noted to be the highest increase within 12 years.
For those in the 20s age group, the employment has risen for about 80,000 in January this year and is projected to maintain its growth in the next 5 months. Those jobs offered for the 30s age group has risen to 11,000, which is considered as the 1st increase within 8 months. On the other hand, the jobs for 40s age group has increased for about 90,000 from the previous month.
The Service and Hospitality Sector
Due to the service sector leading the employment growth in the country, job creation in retail and wholesale sectors has grown for about 126,000 in January of the previous year. On the social welfare and healthcare service industries, the expansion has increased to over 120,000.
With the decrease in the number of inactive population, it was hinted that there is an increasing number of people who are seeking for jobs available in the labor market. This made the number of discouraged workers of searching for jobs lowered while those in their rest period have hit over 150,000 just within the survey period. Due to the increase in the rate of people looking for job, the unemployment rate has increase from 0.1% last year to 3.5 % January this year. This resulted to the expansion of the unemployed rate from 44,000 to 891,000 the previous month.
Though there is an increase with the people searching for jobs, the hiring rate of the country has increased in 1.1% January of the previous year which was the highest gained percentage since March of 2004 as the same percentage rose.
Current Hiring Rate
Based from OECD, the hiring rate for people aging from 15 and above has risen from about 1.3% of the previous year to 64.3% this year, which was recorded as the fastest rise within 12 years span. All of these changes in the employment rate in the country project the continuous growth in the following years, which is a significant factor in the increase of the economy growth of South Korea.