Gov't to closely monitor job market as Middle East violence resumes

Korea will closely monitor sectors with sluggish employment, including manufacturing, amid growing concerns that renewed tensions in the Middle East could weigh on the job market, the Ministry of Finance and Economy said Thursday.

The Finance Ministry held a joint task force meeting on the job market with the Labor Ministry in Seoul after data from the previous day showed Korea adding 63,000 jobs from a year earlier in June.

Asia's fourth-largest economy shed 40,000 jobs in May, marking the first decline in 17 months.

"The figure rebounded in June following growing hopes that uncertainties had eased after the peace negotiations between the United States and Iran," the Finance Ministry said.

The Finance Ministry, however, said employment conditions for young people and the manufacturing sector remained sluggish, with the possibility of renewed tensions in the Middle East posing downside risks to the labor market.

"For sectors that have recently seen sluggish employment, such as manufacturing and construction, the government plans to analyze trends and underlying factors and implement all available policy measures tailored to each sector," the Finance Ministry said.

In June, manufacturing and construction shed 97,000 and 67,000 jobs, respectively, from a year earlier, marking the 24th and 26th consecutive months of job losses.

Korea will announce a comprehensive plan to create jobs for the youth within the third quarter, it added.

Yonhap