GWACHEON, South Korea—South Korea's seasonally adjusted unemployment rate stayed at 3.1% for a third consecutive month in September, government data showed, amid expectations the central bank will lower its policy interest rate for a second time this year.
Job growth is likely to slow in the fourth quarter given continued delay in economic recovery at home and abroad, the Ministry of Strategy and Finance said Wednesday. Unadjusted, the jobless rate was 2.9% in September and 3% in August.
The number of people employed in September was up 685,000 from a year earlier, to 25 million.
That year-to-year increase was nearly twice August's 364,000, but the acceleration partly reflects a low base of comparison—the week-long job survey in September of last year was during the Chuseok (Thanksgiving) holidays when a number of temporary workers were counted out, the finance ministry said.
Of people aged 15 or older, 60% were employed in September, compared with 59.7% in August.
The low September unemployment rate "masks a deepening socio-economic schism" in the job market, said Deutsche Bank senior economist Juliana Lee—which the central bank could address by lowering its policy interest rate.
"Self-employed workers' share of total payrolls is on the rise and they rely heavily on loans," Ms. Lee said.
The number of self-employed rose 111,000 on year in September.
Ms. Lee said Deutsche Bank expects the Bank of Korea to make a 0.25-percentage-point cut, matching one it made in July.
Cutting rates, she said, would help reduce self-employed people's debt burden "amid faltering income growth." Fourteen of 18 economists and fixed-income analysts surveyed by Dow Jones Newswires expect the BOK to lower its rate by 0.25 percentage point to 2.75% at its monthly review Thursday.
South Korea's export-reliant economy has been badly affected by shrinking demand in primary trade partner China, hit by economic slowdown, as well as in the U.S. and Europe.
The value of exports fell for a third month in September, when inflation was at the lower end of the BOK's target range of 2% to 4%.
Moreover, domestic demand is showing signs of duress, with sales in September at the three main department stores falling for a fourth month, and those at discount stores falling for a sixth.
wsj.com
Job growth is likely to slow in the fourth quarter given continued delay in economic recovery at home and abroad, the Ministry of Strategy and Finance said Wednesday. Unadjusted, the jobless rate was 2.9% in September and 3% in August.
The number of people employed in September was up 685,000 from a year earlier, to 25 million.
That year-to-year increase was nearly twice August's 364,000, but the acceleration partly reflects a low base of comparison—the week-long job survey in September of last year was during the Chuseok (Thanksgiving) holidays when a number of temporary workers were counted out, the finance ministry said.
Of people aged 15 or older, 60% were employed in September, compared with 59.7% in August.
The low September unemployment rate "masks a deepening socio-economic schism" in the job market, said Deutsche Bank senior economist Juliana Lee—which the central bank could address by lowering its policy interest rate.
"Self-employed workers' share of total payrolls is on the rise and they rely heavily on loans," Ms. Lee said.
The number of self-employed rose 111,000 on year in September.
Ms. Lee said Deutsche Bank expects the Bank of Korea to make a 0.25-percentage-point cut, matching one it made in July.
Cutting rates, she said, would help reduce self-employed people's debt burden "amid faltering income growth." Fourteen of 18 economists and fixed-income analysts surveyed by Dow Jones Newswires expect the BOK to lower its rate by 0.25 percentage point to 2.75% at its monthly review Thursday.
South Korea's export-reliant economy has been badly affected by shrinking demand in primary trade partner China, hit by economic slowdown, as well as in the U.S. and Europe.
The value of exports fell for a third month in September, when inflation was at the lower end of the BOK's target range of 2% to 4%.
Moreover, domestic demand is showing signs of duress, with sales in September at the three main department stores falling for a fourth month, and those at discount stores falling for a sixth.
wsj.com
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