South Korean unemployment rate highest in 10 years amid COVID-19

With coronavirus lockdown taking a toll on the global economy, South Korea recorded its highest unemployment rate in more than 10 years. The statistics office on June 10 released data that marked the unemployment rate in the country at 4.5% in the month of May, from 3.8% in April. There are currently 12,78,000 jobless people in South Korea, which increased 1,33,000 persons or 11.6% year-on-year. The number of employed persons totalled 2,69,30,000 in May, which went down 3,92,000 persons or 1.4% year-on-year.

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South Korea, like most other nations in the world, is taking the brunt of the pandemic, which shut down businesses and the economy came to a standstill for more than two months. South Korea became a model for the world after it successfully flattened its coronavirus curve. However, the country couldn't save itself from the economic crisis that was due to follow because of the imposed lockdown. The United States, Australia, Japan are also facing a recession due to coronavirus outbreak. Even though Australia's economy was not in good shape prior to the pandemic, the outbreak played a massive role in worsening the situation. 

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Global GDP declines

The World Bank on June 8 in its latest Global Economic Prospects report forecasted that the global GDP in 2020 will shrink by 5.2 percent calling it the worst recession since World War II. According to the World Bank forecast, the advanced economies will contract by 7 percent, while the emerging and developing will record a 2.5 percent decline. According to the report, per capita incomes are estimated to fall by 3.6 percent due to the COVID-19 recession, pushing millions into extreme poverty. 

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(Image Credit: AP)