Korea adds 470,000 jobs in March, unemployment 2.7 percent

People review job openings at a welfare center in Mapo District, western Seoul, on Monday. Korea added 469,000 jobs in March. [NEWS1]

Korea added almost 470,000 jobs in March, the first monthly growth since June.

The number of the employed stood at 28.22 million, up 469,000 from a year earlier, according to data from Statistics Korea Wednesday.

Job additions peaked in June with the addition of 841,000 jobs.

Korea's seasonally adjusted unemployment rate was 2.7 percent, up 1 percentage point on month from the record low of February.

The unadjusted jobless rate last month inched down 0.1 percentage points to 2.9 percent.

“Employment in March expanded from a month earlier despite the economic slowdown, like dwindling exports, due to increased demand for caring services and outdoor activities,” said a spokesperson for Statistics Korea.

Uncertainties exist in the future employment outlook due to the factors that could affect manufacturing and wholesale and retail, which are influenced by exports, according to the agency.

Saudi Arabia and other OPEC+ oil producers said earlier this month they will cut oil output from May, raising inflation concerns.

Jobs were added in the following categories: social welfare (6.9 percent), accommodations and restaurants (8.5 percent) and information and communications (6.8 percent). Negative growth was reported in wholesale and retail (negative 2.0 percent), manufacturing (negative 1.1 percent) and construction (negative 1.0 percent).

“As the population in their 60s continues to rise and life expectancy increases, there’s personal demand to keep working,” the spokesperson added. “That is one of the factors that explains the increase in the number of elderly workers in the social and welfare category, where jobs are being added.”

The number of the employed has been rising since March 2021, largely centered on people aged 60 and above.

In March, 547,000 jobs were added for people 60 and above, while 86,000 jobs were lost by people in their 20s and 63,000 jobs lost for those in their 40s.

The number of jobs in manufacturing decelerated following weak exports amid the sluggish global economy and falling demand for and a drop in chip prices.

Korea’s exports fell for the sixth month in a row in March.

The Bank of Korea kept the policy rate steady for the second time in a row on Tuesday, holding it at 3.5 percent.

A rise in borrowing costs weighs on employment as companies and households cut spending.

Bank of Korea Gov. Rhee Chang-yong said it is too early to discuss rate cuts at this point, adding taming that inflation is the central bank’s top priority and that will be achieved through monetary policy.

BY JIN MIN-JI [jin.minji@joongang.co.kr]