S. Korea's jobless rate unchanged at 3.7 pct in Aug.

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SEOUL, Sept. 16 (Yonhap) -- South Korea's jobless rate stood unchanged in August
from a month earlier but the total number of employed people increased over the
past year, raising hopes that the protracted economic slump might be nearing an
end, a government report showed Wednesday.

The jobless rate was 3.7 percent last month, identical to the previous month,
according to the report by the National Statistical Office. The July and August
figures are the lowest since January when the jobless rate was 3.6 percent.
The number of employed people amounted to 23.62 million last month, up 3,000 from
a year earlier after the economy lost 76,000 positions on-year in July, the
report showed.
"Though it is still early to say if the worst is over, it seems that conditions
have stabilized and once the economy shows signs of a more solid rebound,
companies may start hiring more workers," Jeong In-sook, head of the NSO's
employment statistics division, told reporters.
South Korea had been losing jobs as companies trimmed their recruitment for fear
that business conditions could deteriorate. In May, job losses rose to a 10-year
high of 219,000 but thanks to government efforts to create jobs in the public
sector by providing temporary work, around 4,000 jobs were added in June.
But seasonal factors such as unfavorable weather conditions led job growth into
negative territory in July, suggesting that recovery in the labor market might be
short-lived.
August labor data, however, is the latest in a series of indicators that signal
that the nation's economy is pulling out of the worst phase of its downturn
sparked by the collapse of Lehman Brothers last September.
Industrial output grew for the first time in 10 months in July and consumer goods
also grew in July from a year earlier on brisk demand, marking the third straight
month of on-year expansion.
South Korea's economy, Asia's fourth-largest economy, expanded a
better-than-expected 2.6 percent in the second quarter from three months earlier
after inching up 0.1 percent in the first quarter. During the final quarter of
2008, the economy plunged 5.1 percent.
Foreign ratings agencies struck an upbeat note. Fitch Ratings recently upgraded
its ratings outlook for Korea to "positive" from "negative." Moody's Investors
Service said that South Korea's economy will rebound by 3 percent next year after
minimizing its contraction this year thanks to the government-led stimulus
measures.
In its latest report, the state-run Korea Development Institute revised upwards
its growth projection for South Korea from negative 2.3 percent to negative 0.7
percent.
A sluggish job market, however, has been frequently cited as a downside risk. A
higher jobless rate means less spending as people tend to tighten their purse
strings over job security fears.
The government is working to create jobs in the public sector but it may be
insufficient to kick-start the growth in the labor market if companies are
reluctant to invest, experts say.
In the public sector, the number of temporary workers provided under the
government-led job program totaled 321,000 last month, according to the NSO.
kokobj@yna.co.kr
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