South Korea slashes jobs outlook, downgrades growth forecast

July 17, 2018 - 10:46 pm

SEOUL, South Korea (AP) — South Korea's government says it is dramatically cutting its job outlook while slightly reducing its economic growth forecast.

The Finance Ministry said Wednesday that South Korea's economy will create only 180,000 jobs this year, down from the 320,000 jobs it forecast in December.

The economy will likely expand 2.9 percent this year, compared with forecast in December for 3.0 percent growth.

Slashing its employment outlook nearly by half is politically painful for President Moon Jae-in, who has enjoyed high approval ratings thanks to his administration's diplomacy toward North Korea.

Moon's economic policies have centered on raising incomes and creating jobs, but they have made little headway in alleviating simmering concerns about future sources of growth and employment.