(LEAD) S. Korea's jobless rate jumps to 5 pct in Jan.

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SEOUL, Feb. 10 (Yonhap) -- South Korea's jobless rate jumped in January as
employment conditions remained frozen despite a faster-than-expected economic
recovery, a government report showed Wednesday.

The jobless rate stood at 5 percent last month, compared with 3.5 percent the
previous month, according to the report by Statistics Korea. It marked the
highest level since March 2001 when the rate rose to 5.1 percent.
The seasonally adjusted jobless rate also rose to 4.8 percent from the previous
month's 3.6 percent. The number of employed people increased, however, stood at
22.87 million last month, up 5,000 from a year earlier, the report showed.
"As economic activities pick up and the government pushes to create jobs, the
number of people trying to land a job is spiking, which resulted in the
statistical increase in last month's jobless rate," the agency said. "Many of
those who previously gave up on finding a job are returning to the labor market."
The January figure is casting a dark cloud over the government's job-creation
drive and dimming prospects for many younger people seeking to work, despite
signs that the nation's economy has been rebounding from the global downturn in
recent months.
Industrial output is expanding, with exports rising and consumption also showing
signs of picking up, all of which are supporting the government's upbeat outlook
for the economy this year, for which it expects 5 percent growth.
The government has said it will keep its expansionary macroeconomic policy for
the time being, amid a debate over the timing and extent of a so-called exit
strategy to roll back stimulus measures introduced to kick-start the slumping
economy.
The January job data comes before the nation's central bank was to hold a
rate-setting meeting on Thursday. It has kept its key interest rate at a record
low of 2 percent for 11 straight months.
Job creation remains the top priority for the government this year as it worries
that the nation could face a "jobless" economic rebound. Stagnant employment
conditions could dampen a nascent recovery of domestic consumption and the
overall economic rebound, experts say.
kokobj@yna.co.kr
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