Jobless rate fell to 4.4% in Feb.

Korea`s unemployment rate declined in February from a 10-year high as government programs increased public-sector jobs.

The jobless rate fell to 4.4 percent from 4.8 percent in January, Statistics Korea said yesterday in Gwacheon, citing seasonally adjusted figures.

President Lee Myung-bak aims to boost employment by more than 250,000 jobs and cut the average unemployment rate to about 3 percent this year. The government said in January it plans to provide an allowance and tax incentives for jobless people hired by small businesses, and will expand its database to match those seeking work with smaller companies that are hiring.

"The rate is still at a high level as government efforts to create more jobs this year haven`t started in earnest," said Suh Dae-il, an economist at Daewoo Securities Co. in Seoul. "The jobless rate is likely to fall to the 3 percent range next month once the impact of government programs kicks in."

The Bank of Korea kept borrowing costs unchanged at a record-low 2 percent for a 13th month last week, even as President Lee forecasts the economy will expand more than 5 percent this year, the fastest pace since 2007.



Lee yesterday named Kim Choong-soo, Korea`s ambassador to the Organization for Economic Cooperation and Development in Paris, to succeed Lee Seong-tae as central bank governor when his term ends March 31.

Outgoing Governor Lee said in December that the central bank shouldn`t be too slow to raise rates, and has been forced to accept a vice finance minister sitting in at meetings since January. The bank has kept borrowing costs unchanged even as Australia, Vietnam and Malaysia have raised rates.

...Finance Minister Yoon Jeung-hyun told reporters before this month`s rate decision that "it is the government`s firm belief that it isn`t the right time for rate hikes," repeating a call he has made since last year.

The Bank of Korea should cooperate with the government in implementing policy, the Seoul Economic Daily cited Kim as saying in an interview after his nomination on Tuesday.

The number of people self-employed or working in the public-service sector rose 2.8 percent, yesterday`s report showed. People employed in the construction industry declined 5.2 percent from last year, and jobs in the agricultural, fishery and forestry sectors slid 10.7 percent.

The unadjusted jobless rate was 4.9 percent, the report showed. (Bloomberg)