S. Korean youth face tighter job market: data

SEOUL, July 29 (Yonhap) -- Young job seekers in South Korea faced tougher
employment conditions in May as cloudy economic factors discouraged companies
from hiring workers, data showed Wednesday.

According to the data by the National Statistical Office, the number of employed
between the ages of 15 and 29 totaled 4.04 million at the end of May, down
112,000 from the same month a year earlier. The total population in the age group
was 9.79 million, down 32,000 from a year ago.
The employment rate among younger people stood at 41.3 percent, down from the
42.3 percent recorded a year ago, the data showed.
"The decline in employment is attributed mainly to worsening economic conditions
which restrained companies from hiring more workers," an NSO official said.
"Other factors included a decrease in the number of young people due to a low
birth rate and a growing portion of college students who are not reflected in job
data."
The data came as South Korea's labor market remains tight as companies are
reluctant to hire workers for fear that economic conditions will become tougher
down the road.
South Korea's jobless rate stood at 3.9 percent last month, up from 3.8 percent
the previous month. The June figure is the highest level in three months.
Job creation has become one of the government's top priorities as it looks to
boost domestic demand at a time when the global economic downturn is denting
overseas shipments.
During the first half of this year, the government frontloaded nearly 65 percent
of its budget, which was mostly aimed at creating jobs and stabilizing the
slumping economy.
Meanwhile, employment conditions for seniors here also deteriorated in May,
affected by tightened labor markets and a fast-aging population, which
intensified competition among job-seekers, the latest data showed.
The number of employed senior citizens aged between 55 and 79 totaled 4.45
million for the month, up 46,000 from a year earlier. Their employment ratio fell
1 percentage point, however, to 48.9 percent as the population in the age bracket
increased 270,000 to 9.11 million, according to the data.
kokobj@yna.co.kr
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