The government says South Korea's employment and domestic demand improved but uncertainty is high surrounding the real economy.

In its monthly economic assessment report on Friday, the Finance Ministry said that the drop in employment has narrowed and indices gauging domestic demand have improved.  

The report cited that the number of people with jobs fell by some 352-thousand in June, or less than May, when the number of employed shrank by some 390-thousand.  

The report also noted that credit card spending grew by around nine percent on-year in June and department stores saw their sales display point-four percent growth after seeing minus growth for six-straight months.  

However, the report was quick to add that the real economy is seeing high uncertainty with exports and production continuously slipping amid a contraction in global demand resulting from the COVID-19 pandemic.  

According to the report, output at mining and manufacturing industries shrank by nearly seven percent in May. Exports, meanwhile, slipped nearly eleven percent on-year in June.  

A ministry official said the government will keep a close eye on developments as uncertainty surrounding the real economy has grown after global demand failed to pick up as much as expected.