Roundup: S.Korean manufacturers cut jobs for 5th month amid restructuring

South Korean manufacturers cut jobs for five months in a row as the restructuring process continued among troubled shipbuilders and shipping lines in addition to weak exports, a government report showed on Wednesday.

Employment in the manufacturing industry reduced 102,000 in November from a year earlier, after 115,000 employees were cut in October, according to Statistics Korea.

It marked the first time since the global financial crisis erupted in 2009 that employees recruited by manufacturers declined more than 100,000 for two straight months.

Job creation among manufacturers continued to slump for the fifth consecutive month since the industry's employment posted the first fall in over four years in July.

The government-led restructuring in the shipbuilding and shipping industries caused a slash in jobs among manufacturers. The industries suffered from losses and lower freight rates amid falling global trade caused by the prolonged economic slowdown.

Three key shipbuilders, including Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, pledged to slash jobs and reduce facilities as part of efforts to streamline businesses and cut costs.

As there are major shipyards placed along the country's southeastern coastline, the restructuring especially hit hardest the regions, a traditional political home turf for the ruling Saenuri Party.

Exports, which account for about half of the economy, went into a slump in the past two years despite a slight increase last month. It also contributed to a cut in jobs among manufacturing exporters.

The number of those employed totaled 26,592,000 in November, up 339,000 from a year ago thanks to an increase of 111,000 jobs in the construction industry and the relatively better job creation in the agricultural sector.

The services industry created 311,000 jobs in November compared with a year earlier, but job creation in the transport sector reduced 14,000 as Hanjin Shipping, the country's once-biggest shipper, entered a court receivership and railway workers went into labor strikes.

The hiring rate gained 0.3 percentage points from a year earlier to 61.1 percent in November. The OECD-method employment rate for those aged 15-64 rose 0.3 percentage points to 66.6 percent, keeping an upward momentum for 42 months in a row.

The overall jobless rate was unchanged at 3.1 percent, but the November youth unemployment rate inched up 0.1 percentage point to 8.2 percent, higher than any other figures measured in the month since 2003.

Employment among youths aged 15-29 reduced 19,000 in November compared with a year earlier.

The so-called sentiment jobless rate among youths reached 9.9 last month as the figure includes those who are not in employment, education and training.

In the southeastern city of Ulsan, where major shipbuilders are sited, the jobless rate advanced 1.7 percentage points over the year to 3.9 percent in November, marking the fastest regional rise in the entire country.

By age, employment for those in their 60s or older increased 316,000 last month, but job creations among those in their 20s, 30s and 40s reduced 16,000, 26,000 and 45,000 respectively.

The economically inactive population fell 8,000 in November from a year ago due to a fall in those who replied during a job survey that they took a rest. Those who were in education and training and were raising child shed 1.0 percent and 2.7 percent respectively.

Those who were preparing for getting jobs jumped 67,000 last month, while discouraged workers who gave up getting a job on sluggish labor market conditions increased 9,000 in November. Endit