30% of Korean Graduates Overqualified for Their Jobs

According to the Bank of Korea’s report, the underemployment rate for Korean university students reached 30.5% in September 2019. The rate has only continued to steepen ever since the financial crisis in the late 2000s as the result of a growing supply-and-demand imbalance in the labor market. The gap had widened to 15.12 million graduates versus 10.8 million suitable jobs as of September 2019.

By area of specialization, the largest groups were natural science majors (30.6%) and arts, music, and physical education majors (29.6%); low rates were observed for medicine (6.6%) and education (10.0%), both of which are closely tied to specific professions.

According to the report, the rise in underemployment illustrates the inefficiency of education investment and human capital utilization amid surplus education conditions, which has resulted in a slowdown in productivity.

Gwang-deok. H. (2019, December 26) ‘30% of S. Korean graduates overqualified for their current jobs’ (http://english.hani.co.kr/arti/english_edition/e_business/922173.html)

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

A continuous lack of quality jobs in Korea has made young Korean looking for opportunities outside the home country. The opportunities for settling down in foreign countries after graduation, such as a 2-year PSW visa, will affect the growing interests and needs in higher education overseas. The practical employability and job placement of Korean alumni will be a crucial factor when prospective students consider the educational investment.