South Korea's unemployment at six-year high

South Korea's unemployment rate in February spiked to its highest in six years due to a holiday disrupting the job market, government data showed on Wednesday, adding to concerns over the health of the economy.
The unemployment rate in February in seasonally adjusted terms jumped to 4.1 percent, Statistics Korea data showed, up from 3.5 percent in January. This was the highest since a 4.2 percent rate seen in February 2010.
Statistics Korea blamed the spike on the Lunar New Year holiday, which fell early in the month. The rise in unemployment followed the termination of temporary jobs that had been created for the holiday.
The jobless rate for all age groups rose except those in their early 20s and 50s. Middle-aged Koreans have continued to re-enter the job market since last year due to a sluggish economy.
Some young Koreans were more able to find jobs after graduating from university in February, the data showed.
"We will not be downgrading our employment rate forecast just from this batch of data, as it does not confirm a downward trend. We do recognise the importance of improving the job market though and will be announcing new measures soon," Finance Minister Yoo Il-ho told reporters on the sidelines of an event in Seoul. In non-seasonally adjusted terms, the jobless rate last month stood at 4.9 percent, also the worst in six years.
A separate statement from the finance ministry said the government planned to announce new measures in April to boost job creation for young Koreans and women, It did not provide details.
The finance ministry sees employment conditions improving in months ahead thanks to a sustained recovery in private consumption, although analysts expressed doubt in this expectation as recent indicators have show South Korea's growth is still fragile.
"The jobless rate usually tends to rise in the first quarter but right now the situation looks pretty depressing as
manufacturing industry is sluggish. The job market is unlikely to recover in the first half of the year," said Suh Dae-il, an analyst at KDB Daewoo Securities.
"This won't be a direct reason for the central bank to lower interest rates but as it is an indicator of a slowing economy, so views for a rate cut will find support."