Household income, jobs on the rise

Korean households’ monthly income grew 6.5 percent on-year in the third quarter thanks to improving employment conditions, a government report showed yesterday.

According to the report by Statistics Korea, households’ monthly income averaged 3.89 million won ($3,413) in the July-September period. Inflation-adjusted household income also rose 1.6 percent from a year earlier.

The disposable income of households grew 6.3 percent on-year to a monthly average of 3.15 million won, the report said.

“Household income continued to increase thanks to improving employment conditions,” the report said.

Labor market conditions are showing signs of steady improvement, with the nation’s jobless rate standing at 2.9 percent last month, down from the previous month’s 3 percent.

The economy also gained 501,000 more jobs last month compared to the previous year. The on-year job creation was the largest since the economy added 586,000 in May 2010. Households’ earned income grew 6.2 percent, while their business income rose 4.9 percent, according to the report.

The report also showed household expenditures expanded 6.2 percent to 3.19 million won. Of the total, consumption expenditures gained 5.8 percent from a year earlier, while nonconsumption expenditures, which include payments on taxes, pensions and insurance, expanded 7.4 percent from a year earlier, according to the report.

Yonhap