Korea's job creation slows in May on ferry disasterUpdated: 2014-06-12 06:28:02 (KST)
The Korean economy added 410-thousand jobs in May from a year ago, bringing the number of employed in the nation to almost 26 million.
But that marks three straight months of slowing job growth and the lowest gain since last July.
Statistics Korea says slumping private consumption due to the deadly ferry disaster in April resulted in the lower growth in employment last month.
It's no surprise then that the nation's service industry which includes the retail, lodging and restaurant sectors, added only around 320-thousand jobs in May from a year earlier, far lower than more than 500-thousand created in the previous month.
Job creation in the leisure activities sector even dropped by 17-thousand.
The statistics agency said earlier that service sector production had dropped one percent from the previous month, while retail sales were down more than one-and-a-half percent.
That, the agency said, is a reflection of the lackluster domestic demand brought on by the disaster.
While the government has cautioned that slowing consumer spending caused by the ferry tragedy could hurt the nation's economic recovery, the finance ministry saysit is not considering an extra budget to further stimulate the economy.
Hwang Ji-hye, Arirang News.
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