Uncertainty continues to weigh on South Korea's economy amid a contraction in domestic demand and drastic job losses in the labor market last month - despite gains in manufacturing and exports.

The Finance Ministry made the assessment in its monthly economic evaluation report called the “Green Book” released on Friday. 

It said the nation’s manufacturing sector and investment have improved thanks to a recovery in exports, noting outbound shipments in January grew eleven-point-four percent on-year. 

The business survey index(BSI) for the manufacturing sector, which gauges corporate sentiment about the economy, grew from 82 in December to 85 in January. 

Meanwhile, the number of people with jobs slipped by more than 980-thousand on-year in January, posting a sharper drop than last December. The unemployment rate climbed one-point-six percentage points to five-point-seven percent.