S. Korea's jobless rate rises to 11-year high in September

South Korea's jobless rate rose to the highest in 11 years in the month of September due to chronic export slump and the ongoing restructuring in shipbuilding and shipping industries, a government report showed on Wednesday.

Unemployment rate gained 0.4 percentage points from a year earlier to 3.6 percent in September, according to Statistics Korea. It was the highest level measured in the month of September since 3.6 percent tallied in September 2005.

The number of those unemployed increased 120,000 as those in their 20s and 50s mainly lost their jobs.

The youth jobless rate among those aged 15 to 29 was 9.4 percent in September, up 1.5 percentage points from a year earlier. It was higher than any September figure since the statistical agency began compiling the data.

The number of those employed reached 26.531 million in September, up 267,000 from the same month of last year. It was the lowest growth since it posted an increase of 261,000 jobs in May.

Lackluster labor market came as exports continued slump amid the global economic slowdown, leading major exporters to refrain from hiring workers.

Exports, which account for about half of the economy, declined 5.9 percent in September from a year ago. The country's exports kept falling in the past 21 months except for August.

The government-led restructuring among shipbuilders and shipping lines is going on after major three shipbuilders, including Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering, pledged to reduce workers by 30 percent and overcapacity by 20 percent by the end of 2018.

Hanjin Shipping, South Korea's largest container shipping line, filed a court receivership last month, which is expected to raise unemployment rate in the sector. Endit