South Korea lost roughly 280,000 jobs in July, extending the decline for the fifth straight month as virus woes pushed the unemployment rate to a 20-year high for the month.

The jobless rate rose 0.1 percentage point to 4.0 percent, the highest July figure since 2000, Statistics Korea data showed Wednesday.

The number of unemployed climbed 41,000 to reach 1.14 million, the highest since July 1999 under the new data system. The unemployment rate for youth aged 15-29 was 9.7 percent.

The number of employed in July totaled 27.1 million, down 277,000 from the same month last year. Job losses continued for the fifth straight month, the longest since the aftermath of the global financial crisis in 2009 when the decline lasted for eight straight months.

But the pace of layoffs had slowed compared to months at the height of the outbreak. The Korean economy shed 476,000 jobs in April, 392,000 jobs in May and 352,000 jobs in June.

The employment rate among those aged 15 and older sank to a nine-year low of 60.5 percent in July, down 1.0 percentage point from the same month a year ago.

The employment rate for those aged 15 to 64, the standard of the Organization for Economic Cooperation and Development (OECD), fell 1.1 percentage points to 66.0 percent, the lowest in seven years. The youth employment rate was down 1.4 percentage points at 42.7 percent, also the lowest for July since 2015.

Accommodation and restaurant sector accounted for the bulk of July’s job losses, losing 225,000 jobs, amid continued social distancing measures and absence of foreign travelers. Retail and wholesale sector cut 127,000 jobs and education services 89,000 jobs. Manufacturing also saw 53,000 fewer jobs.

Healthcare and social welfare services continued to drive the job growth, adding 161,000 jobs in July, party led by state-funded temporary jobs for the elderly. Transportation and logistics sector gained 58,000 jobs as online shopping orders surged amid the coronavirus pandemic.

Those aged 60 and older were the only group to see job gains, adding 379,000. The 30s lost 170,000 jobs, the 20s 165,000 jobs, the 40s 164,000 jobs and the 50s 126,000 jobs.

The COVID-19 crisis continued to hit temporary workers hard. There were 395,000 fewer temporary workers and 44,000 fewer day laborers in July compared to a year ago, while the number of regular employees rose 346,000.

The economically active population totaled 28.2 million, down 236,000 on year to extend its slide for the fifth straight month. The non-economically active population rose 502,000 to 16.6 million, the highest since July 1999. Those categorized as “resting” also surged to a 17-year high of 2.31 million, with the number rising in all age groups. Individuals who have given up looking for work rose 55,000 to 580,000.

Korea’s job market outlook for August is already looking grim due to a record rainfall that has pummeled the country for more than 50 days. As of Wednesday, the rain has left 33 dead, nine others missing, and displaced more than 7,600 people from their homes.

By Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]