Last Year, Unemployment Rates Improved in OECD Member Countries... South Korea Remains Stagnant

2019 OECD Member Countries Unemployment Rate 5.3→5.2%

[Asia Economy Reporter Kim Eun-byeol] While the employment situation in most OECD member countries improved last year, South Korea remained stagnant.

According to unemployment rate data compiled by the OECD on the 11th (local time) for 29 member countries (7 countries not surveyed), the average unemployment rate among OECD member countries fell from 5.3% in 2018 to 5.2% in 2019. The average unemployment rate of the Group of Seven (G7) also dropped from 4.6% to 4.3% during the same period, and the average unemployment rate of European Union (EU) member countries decreased from 6.8% to 6.3%. The Eurozone (19 countries using the euro) unemployment rate declined from 8.2% to 7.6%.

France, which had a high unemployment rate, saw a significant drop from 9.1% to 8.5%, a 0.6 percentage point decrease, and the unemployment rates in Ireland (5.0%), Italy (10.0%), and the United States (3.7%) also improved considerably.

However, South Korea’s unemployment rate rose from 3.7% in 2017 to 3.8% in 2018 and remained at the same level last year. South Korea’s unemployment rate is now higher than that of the United States, marking a reversal between the two countries since 2000. Notably, South Korea’s monthly unemployment rate increased in the second half of last year. According to OECD data, South Korea’s unemployment rate rose every month after recording 3.1% in August last year. The December unemployment rate also increased by 0.2 percentage points from 3.6% in the previous month.

Aside from South Korea, Chile (7.0%), Japan (2.4%), and Denmark (5.1%) maintained unemployment rates at similar levels to the previous year. The unemployment rate for those aged 25 and over in OECD countries also improved from 4.6% to 4.4%, but South Korea maintained the same level at 3.4% as the previous year.

While the global economy is improving and OECD unemployment rates are showing a downward trend, South Korea’s unchanged unemployment rate is rooted in structural causes. These include a rapidly shrinking working-age population due to low birth rates and aging, as well as ongoing restructuring in the manufacturing sector.

The OECD noted, "While member countries’ unemployment rates remained stable at around 5.1% in December, South Korea’s December unemployment rate rose by 0.2 percentage points." South Korea was one of only a few countries, along with Belgium, Latvia, Luxembourg, and Portugal, where the unemployment rate increased in December, the year-end month.

This content was produced with the assistance of AI translation services.