Older workers pull South Korea jobless rate down to record low

SEOUL  -South Korea’s unemployment rate has fallen back to a record low, data showed on Wednesday, mainly due to increased employment among people aged 60 and over, and as shrinking exports and a sluggish housing market have yet to significantly hit payrolls.

The unemployment rate was 2.6 percent in February versus 2.9 percent in January on a seasonally adjusted basis, matching a record low also touched in August, showed data from Statistics Korea.

Economists said the data is one of the most time-lagging indicators.

“Manufacturing and construction sectors, among others, will soon begin to show the effects of shrinking exports and a weakening housing market,” said Park Sang-hyun at HI Investment and Securities.

People aged 60 or older contributed most to the declining unemployment rate with the figure in this age group falling to 1.6 percent from 2.6 percent a month earlier. The jobless rates for other age groups changed little, with some rising slightly.

Exports fell in each of the past five months from a year earlier as the global economy slowed after a series of monetary tightening measures worldwide.

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