The manufacturing sector employed a total of 4.2 million workers in the first half, down 75,000 from the same period last year, the Ministry of Finance and Economy and the National Statistical Office announced yesterday (July 18).

This is the second-lowest decline since the first half of 1999, when 104,000 jobs were lost.

The job decline comes as surging oil prices have weighed down the confidence of consumers and manufacturers, put a strain on buying power and raised costs for businesses. Manufacturers' sentiment dropped to an 11-month low in June, while consumer confidence fell in the second quarter from a four-year high.

The price of Dubai crude oil, the country's benchmark, has soared about 29 per cent this year.

To foil the fall in employment, the country's large business groups highlighted the need for a successful free trade accord (FTA) now being pursued by Korea with the United States.