South Korea’s unemployment rate hit a nine-year high in January 2019, to around 4 percent. The unemployment rate for young adults aged between 15 and 29 also rose to 11.5 percent in April from 10.7 percent tallied a year earlier. Although it has eased back now, there is still a concern that the 4 percent high unemployment rate becomes a new normal, not a temporary phenomenon.

It marks the first time since the IMF crisis 22 years ago that the unemployment rate has been in the 4 percent range for five consecutive months. The previous pattern showed a temporary increase during the graduation season from February to March while maintaining a 3 percent unemployment rate.

Facing an unprecedented job crunch at home, many young South Koreans are now signing up for government-sponsored programs designed to find overseas positions for a growing number of jobless college graduates. The programs found overseas jobs for 5,783 graduates last year, more than triple the number in 2013, its first year. Almost one-third went to Japan, followed by the United States, Singapore, and Australia.

Commentary by Heather Eom, Education Services Manager, British Council Korea:

There are some other factors for the severe unemployment rate in Korea besides the global economic recession, double-digit hikes in the minimum wage in 2018-19, and secondary effects of US-China trade war, especially for young adults.

South Korea has the most highly educated youth in the OECD with three-quarters of high school students going to college, compared with an average of 44.5 percent. Naturally, they tend to have higher standards for a job and more actively design their career paths, compared to the older generation. That should be one of the crucial factors leading to the in-country stiff competition for limited top-tier positions, with graduates refusing to lower their sights.

As the number of young Koreans looking for opportunities outside the home country has been increasing, the interests and needs in higher education overseas are also likely to increase in the long term. In that context, UK higher education or further education could be a tempting option for them to secure competitiveness to get decent jobs abroad. We recommend that when recruiting students in Korea to communicate internship opportunities or placements within courses.

Resources:

Edward. W. (2019, March 13) ‘South Korean unemployment eases from 9-year high’

Kui-dong. J. (2019, June 13) '실업률 4%' 만성화되나…구조조정·자영업 위축에 일자리 창출 ‘뚝’

Jung-a. S. & Alice. W. (2019, April 25) ‘South Korea suffers worst contraction since financial crisis’

Heekyoung. Y. & Cynthia. K. (2019, May 13) ‘South Korea's latest big export: Jobless college graduates’

Edward. W. (2019, June 12) ‘S Korea jobless rate steadies in face of economic headwinds’

Yonhap News (2019, May 15). ‘Jobless rate rises to 4.4% in April’