South Korean unemployment rate to fall in coming months

The pace of hiring in manufacturing, construction and other services picked up after the shock from the MERS outbreak started to fade.

The pickup in manufacturing hiring suggests that new launches by the auto companies over the summer have started to revive the pace of factory hiring. Therefore, the job addition trend was unseasonally stronger in July - rising 141k in a single month.

Whereas, the seasonally adjusted unemployment rate in South Korea improved a little to 3.7% in July from 3.9% in June, while consensus was expecting the unemployment rate at 3.9%. The unemployment rate is expected to subside towards 3.5% in the coming months as the manufacturing and service sectors are performing well, says Barclays.