South Korea's jobless rate rises to 3.9 percent

Friday, March 27, 2009

AP - Thursday, March 19SEOUL, South Korea - South Korea's jobless rate rose for a fourth straight month, official data showed Wednesday, as the country's worst slump in a decade takes its toll on workers.
February's unemployment rate stood at 3.9 percent, up from 3.6 percent in January, according to the Korea National Statistical Office. Adjusted for seasonal factors, the rate rose to 3.5 percent from 3.3 percent.
South Korea is facing its worst downturn since the 1997-98 Asian economic crisis as exports and production slump in the face of a drop-off in global demand for its cars and electronic products.
Asia's fourth-largest economy shrank 3.4 percent in the fourth quarter of last year. The government says the economy will contract 2.2 percent in 2009, which would be the first annual shrinkage since 1998.
The Bank of Korea slashed interest rates six times from October to a record low 2 percent, though took a breather at its most recent policy meeting last week.
The number of South Koreans with jobs in February declined by 142,000 from the same month last year, the statistical office figures showed, the third straight month of decline.
South Korea's worsening employment situation comes as the country's ruling party and government are working to compile extra spending of as much as 29 trillion won ($20.4 billion), according to a ruling party official.
Yim Tae-hee, chairman of the Grand National Party's policy committee, told reporters Tuesday that officials were aiming for the budget to be between 27 trillion won and 29 trillion won.