April 24, 2024
Economy
Economic growth not leading to job creation
[THE INVESTOR] South Korea’s economic growth is not creating as many jobs as before, government analysis indicated on Jan. 3.
Data by the Finance Ministry and Statistics Korea show the government expects 2.6 percent economic expansion in 2017 with around 260,000 new jobs, translating to 100,000 people being newly employed per 1 percent economic growth.
Such ratio is about half of what it used to be five years ago, according to detailed analysis.
In 2012, the country’s economy grew 2.3 percent but created 437,000 jobs, or 190,000 employment per 1 percent growth. In 2016, the country marked a 2.6 percent growth with 290,000 new jobs, or 112,000 jobs per 1 percent.
The ratio has also been low in the past, especially in the mid-2000s when 1 percent of economic expansion led to just over 50,000 jobs being created.
Officials acknowledge that the job market could worsen as corporate restructuring and exports slowdown threaten the manufacturing sector.
(theinvestor@heraldcorp.com)
Data by the Finance Ministry and Statistics Korea show the government expects 2.6 percent economic expansion in 2017 with around 260,000 new jobs, translating to 100,000 people being newly employed per 1 percent economic growth.
Such ratio is about half of what it used to be five years ago, according to detailed analysis.
In 2012, the country’s economy grew 2.3 percent but created 437,000 jobs, or 190,000 employment per 1 percent growth. In 2016, the country marked a 2.6 percent growth with 290,000 new jobs, or 112,000 jobs per 1 percent.
The ratio has also been low in the past, especially in the mid-2000s when 1 percent of economic expansion led to just over 50,000 jobs being created.
Officials acknowledge that the job market could worsen as corporate restructuring and exports slowdown threaten the manufacturing sector.
(theinvestor@heraldcorp.com)
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