South Korea's jobless rate fell slightly in May on a rise in the number of employees in the health and accommodation sectors, with the unemployment rate for young people still remaining high, a government report showed Wednesday.

The unemployment rate in Asia's fourth-largest economy stood at 3.7 percent last month, compared with 3.9 percent tallied in April, according to the report compiled by Statistics Korea.

The seasonally adjusted jobless rate stayed at 3.7 percent in May.

Job creation edged up from the previous month. The number of employed people stood at 26.45 million in May, up 261,000 from a year earlier, higher than the previous month's 252,000 gain.

The unemployment rate for young people, aged between 15 and 29, reached 9.7 percent last month, down from April's 10.9 percent.

However, it marked the highest number for the month of May.

"The youth jobless rate edged down as the recruitment season ended in May," said Sim Won-bo, the head of the agency's employment statistics division. "But in June, the rate is expected to go up as a big government exam is scheduled."

The unemployment rate for those aged under 29 hit an all-time high of 12.5 percent in February as tens of thousands of young people applied for a nationwide civil service exam at the time, overlapping with the college winter vacation and graduation season.

The statistical agency said the accommodation and restaurant sector hired 2.26 million people last month, up 88,000 from a year ago, while the health and welfare industry employed 1.88 million, up 89,000 people on-year.

The manufacturing sector hired 4.5 million in May, up 50,000 workers from a year earlier.

The agency noted that the on-going strict restructuring efforts in the shipbuilding and other shaky sectors will likely weigh heavily on the job market in the coming months.

"We heard that the shipbuilding companies will carry out massive layoffs some time in the second half. This is expected to push up the jobless rate," said Shim. "The regions where major shipyards are located showed some signs of downturns in the number of employees."

South Korean shipbuilders, including Daewoo Shipbuilding & Marine Engineering Co., have been under severe financial strain in the face of a fall in new orders amid a protracted slump in the world's economy.

They announced self-rescue plans, including asset sales and downsizing, while the government decided to inject some 12 trillion won (US$10 billion) into state-run policy lenders to finance the restructuring process.

The finance ministry said it will put policy priority on job creation as part of its efforts to deal with downside pressures.

"It is worrisome that the employment market will shrink as the country's exports keep falling and full-scale corporate restructuring is set to go on," the ministry said in a release.

"The government will focus on creating jobs and come up with various measures to prop up the economy." (Yonhap)