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No. of manufacturing, retail workers drop for 1st time in 6 years

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By Jhoo Dong-chan

The number of workers employed in the manufacturing, services (restaurant and lodging) and retail sectors has declined this year as employers have become more reluctant to hire on sluggish domestic consumption and rising wages.

These three sectors account for 39.1 percent of the workforce.

According to Statistics Korea, Sunday, the number of employees in the "three main categories of business" dropped by 160,000 in the first 10 months of 2018 from the same period last year. This was the first time figures have declined since the agency began compiling data in 2013.

Some 10.48 million were employed in these areas from January-to-October, down 163,700, or 1.5 percent from 10.64 million in 2017.

Of the three industries, the retail industry was down 73,100 in the period, followed by manufacturing and services at 46,000 and 45,000, respectively.

The number of workers in the three industries climbed by 441,600 in 2014 compared to the previous year, but growth slowed for the next three years.

Data also suggested that the manufacturing sector still accounts for the largest portion in the nation's total number of employees at 4.51 million in the January-to-October period. The retail and services businesses employed 3.72 million and 2.25 million in the period.

The declines in the three sectors contributed to the overall number of unemployed which stood at 1.1 million people in the second quarter this year, up 30,000, or 2.9 percent, from 2017. This was the highest second-quarter figure in the 20 years the agency has been collecting related data.

The figures showed that former workers in the manufacturing sector made up the largest portion of the unemployed.

These and other recent economic indicators demonstrate that Korea has failed for months to create jobs, leading the public to turn against President Moon Jae-in's "income-driven growth" policies that center on higher minimum wages and larger public sector employment, according to analysts.

"The government's policy has failed to address the nation's current economic situation. There wasn't much room for firms to invest amid the downturn. Due to mounting pressure in labor costs, not only conglomerates but also small businesses have downsized their staff," said Sung Tae-yoon, a professor of economics at Yonsei University.

Statistic Korea Commissioner Kang Shin-wook said in a recent media conference that the nation's economy might have peaked before President Moon took office in May last year amid growing criticism of policy damage to the fragile economy.

"I cannot pinpoint the exact month, but the graph in general indicates the economy peaked around the second quarter of last year," Kang said in the press conference.




Jhoo Dong-chan jhoo@koreatimes.co.kr


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