National Employment Rate Falls for 4 Consecutive Quarters in Q1... Seoul Unemployment Rate Hits Highest at 6.1%

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The national employment rate in the first quarter of this year showed a decline for the fourth consecutive quarter. While the unemployment rate continued to rise, Seoul recorded the highest level nationwide at 6.1%.

According to the '2021 First Quarter Regional Economic Trends' released by Statistics Korea on the 17th, the national employment rate in the first quarter was 58.6%, down 1.3 percentage points from a year earlier, marking a decline for four consecutive quarters. By age group, the employment rate fell among those in their 30s (-1.6%p), 20s (-1.4%p), and 40s (-1.2%p). By region, the employment rate declined in 14 cities and provinces including Gangwon (-1.8%p), Gyeongnam (-1.7%p), and Gyeongbuk (-1.7%p).

On the other hand, Jeonbuk (1.2%p), Daegu (1.0%p), and Sejong (0.1%p) saw increases in employment rates. In particular, Jeonbuk's employment rate for those in their 20s rose by 3.6%p over the year, while Daegu and Sejong increased by 3.7%p and 4.9%p respectively. A Statistics Korea official explained, "The employment rate among young people in these regions increased mainly in retail, accommodation, and food service industries."

The national unemployment rate in the first quarter recorded 5.0%, up 0.8 percentage points from a year earlier, influenced by rising unemployment among the elderly aged 60 and over and youth aged 15-29. Accordingly, the unemployment rate rose for four consecutive quarters compared to the same period last year. By region, the unemployment rate increased in 12 cities and provinces including Gyeongnam, Seoul, and Jeju. Seoul recorded the highest rate nationwide at 6.1%.

National manufacturing production increased by 4.5% compared to a year earlier. After recording no change (0.0%) in the fourth quarter of last year, manufacturing production rebounded in the first quarter. By region, manufacturing production increased in 13 cities and provinces including Gyeonggi (11.2%) and Chungbuk (8.7%), while it decreased in four cities and provinces including Busan (-7.1%) and Gyeongnam (-4.2%). A Statistics Korea official explained, "Due to the recent impact of COVID-19, the air transportation industry has been sluggish, and manufacturing production in Busan and Gyeongnam decreased mainly in other transportation equipment such as aircraft parts," adding, "In Gyeongnam, shipbuilding production was also sluggish."

Service industry production increased by 2.2% nationwide, with Seoul, which has a large share of finance and insurance industries, recording the highest growth rate at 6.3%. Consumption (retail sales) increased in 14 cities and provinces including Daegu (9.5%) and Daejeon (8.3%), but decreased in Jeju (-8.1%) and Incheon (-2.6%). Exports increased in 16 cities and provinces including Gangwon (34.7%).

Consumer prices rose by 1.1% nationwide in the first quarter, marking the third consecutive quarter of increase. The rate of increase was the highest in a year since the first quarter of last year (1.2%). By region, Jeonnam (1.5%) and Gyeongnam (1.4%) showed particularly high inflation rates, with prices rising in all cities and provinces nationwide.

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