S.Korea Aug unemployment rate tumbles to near 6-yr low

Credit: REUTERS/Kim Hong-Ji

South Korea's unemployment rate in August tumbled to its lowest in nearly six years as the government boosted budget spending on jobs to cushion the impact of falling exports on the economy, government data showed on Tuesday.

SEOUL, Sept 11 (Reuters) - South Korea's unemployment rate in August tumbled to its lowest in nearly six years as the government boosted budget spending on jobs to cushion the impact of falling exports on the economy, government data showed on Tuesday.

The unemployment rate fell to 3.1% in August after adjustment for seasonal factors from 4.0% in July, marking the lowest since November 2013 and breaking away from a 3.7-4.4% range seen so far this year, the Statistics Korea data showed.

The sharp fall in the unemployment rate also came as more people opted to stay away from the job market, the data showed, with the participation rate falling to a seasonally adjusted 63.0% in August from 63.3% in July.

August was the first month since the parliament approved a supplementary budget of 5.83 trillion won ($4.90 billion) on Aug. 2, which the government has proposed to support the faltering economy.

South Korea's economy, Asia's fourth-largest, is widely expected to see this year's growth falling to the lowest since the global financial crisis a decade ago as the trade-dependent economy was hit hard by the shrinking exports. ($1 = 1,189.4900 won)

(Reporting by Choonsik Yoo; Editing by Himani Sarkar)

((choonsik.yoo@thomsonreuters.com; +822 6936 1464;))

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