KDI: Fall in labor demand contributes to rising unemployment
- 6 years ago
KDI "노동수요 축소로 올해 실업률 상승"
Korean job seekers have been struggling with an unemployment rate that hit three-point-six in September.
A think tank released a report analyzing the possible causes of this unwelcome trend.
Kim Hyesung provides a closer look.
A new study shows the main cause of rising unemployment rate in the country is a lack of labor demand, or basically a lack of jobs... due to factors like rising labor costs, restructuring in the manufacturing sector and the sluggish construction sector.
The Korea Development Institute pinned the job losses on sluggish shipbuilding and auto industries in particular.
"Analysis of the data shows between 2014 and 2017, the biggest contribution to unemployment came from industry job mismatches, like wages and inflexible working conditions that keep the unemployed from moving to another industry. But starting this year, with a slowing economy, falling labor demand in the manufacturing industry in particular, contributed more to rising unemployment."
The report said the unemployment rate in the third quarter was 4-point-zero-three percent,... or nearly 4-tenths of a percentage point higher than the fourth quarter of last year.
The fall in labor demand, it said, raised the rate by a quarter percentage point -- that is, more than two thirds of the total increase.
The report said rising labor costs could be affected by the minimum wage hike or by giving temporary workers permanent positions, but it noted that those figures were not calculated into the report.
The key to tackling unemployment, the KDI said, will be an increase in labor demand, more job creation from innovative companies... and a more flexible working environment that enables the unemployed to move from one sector to another.
Kim Hyesung, Arirang News.
Korean job seekers have been struggling with an unemployment rate that hit three-point-six in September.
A think tank released a report analyzing the possible causes of this unwelcome trend.
Kim Hyesung provides a closer look.
A new study shows the main cause of rising unemployment rate in the country is a lack of labor demand, or basically a lack of jobs... due to factors like rising labor costs, restructuring in the manufacturing sector and the sluggish construction sector.
The Korea Development Institute pinned the job losses on sluggish shipbuilding and auto industries in particular.
"Analysis of the data shows between 2014 and 2017, the biggest contribution to unemployment came from industry job mismatches, like wages and inflexible working conditions that keep the unemployed from moving to another industry. But starting this year, with a slowing economy, falling labor demand in the manufacturing industry in particular, contributed more to rising unemployment."
The report said the unemployment rate in the third quarter was 4-point-zero-three percent,... or nearly 4-tenths of a percentage point higher than the fourth quarter of last year.
The fall in labor demand, it said, raised the rate by a quarter percentage point -- that is, more than two thirds of the total increase.
The report said rising labor costs could be affected by the minimum wage hike or by giving temporary workers permanent positions, but it noted that those figures were not calculated into the report.
The key to tackling unemployment, the KDI said, will be an increase in labor demand, more job creation from innovative companies... and a more flexible working environment that enables the unemployed to move from one sector to another.
Kim Hyesung, Arirang News.