NABO Economic Trends & Issues February Edition (Issue No. 76)
Published on 22 February 2018
Published by Macro-Economic Analysis Division of the Economic Analysis Bureau
I. Economic Trends
The Korean economy has recently been exhibiting signs of a decline in new jobs amid an apparent recession such as through decreasing exports and production. Exports have decreased as the unit prices of leading export goods such as semi-conductors and petroleum products dropped by a greater rate, and All Industry Production exhibited weak performance figures as industrial production and services production activity weakened due to lower domestic demand. The employment rate has dropped as employment in the manufacturing sector decreased by a higher rate, and the employment situation is deteriorating as the unemployment rate reached 4.5%.
Ⅱ. Analysis of the Changing Rate of Employment by Type of Business among Self-Employed Businesses
The total number of employed people in 2018 increased by 97,000 YoY, 219,000 (69.3%) less than the number of new jobs in 2017 (316,000). Among these figures, wage workers and non-wage workers decreased by 103,000 and 115,000 YoY, respectively. The change in sector-specific self-employment contributed to the deteriorating increase in the total number of new jobs in 2018. Such trend was significant among individually self-employed businesses such as construction, food and hospitality within the services industry, wholesale and retail as well as businesses providing individual services. In particular, affected by the contraction of construction investment and private consumption due to a construction industry slump and real economic slowdown, employment conditions appear to have deteriorated mainly in the construction, wholesale and retail as well as the food and hospitality business sectors.
Ⅲ. Economic Trends and Investment Environment in Vietnam
The Vietnamese economy has developed into a global manufacturing hub and a promising consumer market by emerging as a manufacturing industry-led FDI hub since the introduction of the Doi Moi economic reforms. Korea and Vietnam have maintained friendly ties since the establishment of diplomatic relations in 1992 and enhanced economic cooperation since the conclusion of an FTA in 2015. With the increase of investments and rapid growth of bilateral trade volume, Vietnam has become Korea’s third largest export destination after China and the US.