South Korea is scheduled to release May job market data on 10 June. The seasonally adjusted unemployment rate is likely to drop to 3.5% due to a rise in payrolls and a decline in job seekers, says Standard Chartered. The number of employed likely increased from 216,000 in April, which was the lowest level in 26 months due to poor numbers in agriculture and fishery on account of bad weather.
Employed numbers is expected to rebound to over 300,000 in May, adds Standard Chartered. April had a higher number of job seekers from the non-core labour force (in their early-20s and 50s) than usual. Continued export sluggishness is a key downside risk for the job market, as export performance impacts manufacturing and service sector jobs. Exports dropped for the fifth consecutive month in May by 10.9% y/y, and we believe the downtrend will continue through 2015.
