(Bloomberg) — South Korea’s jobless rate edged lower in November, as a relaxation of virus curbs and higher vaccination rates helped stabilize the employment market before a resurgence of Covid that has included local cases of the omicron variant.
The unemployment rate fell to 3.1% from 3.2% in October, compared to economists’ forecast for a reading of 3.3%. Employment rose by 553,000 from a year earlier, gaining for a ninth straight month.
The Korean government eased virus restrictions significantly in November as vaccinations hit key thresholds, giving a fillip to hiring in the services sector. But the recent surge in serious Covid cases and deaths, along with the emergence of omicron, have heightened public caution and clouded the jobs outlook into 2022.
How the country’s labor market holds up in the face of a worsening virus situation will factor into the Bank of Korea’s policy decisions. Having hiked rates twice since August, the BOK is weighing the timing of a third increase, which investors expect to happen within the next three months.
In November, the health and social service sectors added 279,000 positions from a year earlier. Employment increased by 148,000 in the transportation and warehouse industry, and by 105,000 in education services.
Restaurants and hotels shed 86,000 jobs, while the manufacturing sector added 51,000 positions. The seasonally-adjusted participation rate held steady at 62.8%.
(Updates with more detail)
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