South Korea's jobless rate fell for the first time in nine months in July, data showed on Wednesday, lifting hopes for a steady economic recovery and triggering a sell off in bond futures. But analysts stopped short of predicting an early rate rise by the central bank, saying uncertainties in the domestic and global economies remained.
The seasonally adjusted unemployment rate eased to 3.8 percent in July from an eight-year peak of 4.0 percent in June, its first downturn since October 2008 but well above pre-crisis levels, data from the National Statistical Office showed. The level was also the lowest since April's 3.7 percent.
"Job market conditions have improved but not enough to tempt complacency and call for a quick policy shift," said Park Sang-hyun, an economist at HI Investment & Securities. Park said companies were still reluctant to hire new employees amid persistent weak domestic demand and a lack of confidence about a global economic recovery. The positive job market figures put a break on the debt market's rally driven by comments from the central bank governor on Tuesday that cooled expectations of an early policy tightening.