Korea's 2016 job growth likely to be impacted by weak exports and consumption payback

Korea's unemployment rate in November was unchanged at 3.4% s.a. This reflects the diverging paths of economy, with the services remaining resilient and challenging outlook for some sectors.

The private sectors hiring was improved by accommodation and food services, which added 3000 jobs, supported by post MERS outbreak. Job losses in wholesale and retail trade offset this strength, which resulted in a slowdown in the hiring in private sector.

Given increased hiring in public administration, the stable labor market was masked by persisting government support. The employment in agriculture and manufacturing dropped in November.

"If inventories do not clear sufficiently, the softness in export-led manufacturing could persist into 2016. Local employers also echoed our view that the challenging export environment and a sequential payback in private consumption are likely to cut into job growth and profitability", says Barclays in a research note.