Unemployment rate South Korea 2022, by age
In April 2022, people aged 15 to 19 years old had the highest unemployment rate across all age groups in South Korea, at about eight percent. While the average unemployment rate stood at three percent, it was also significantly higher among those in their 20s at about 7.4 percent.
This situation can be attributed to various social, demographic, as well as labor market specific factors of South Korea. Despite the very high level of education among youth, which is reflected in the high university enrollment rate, more and more companies are demanding concrete work experience from applicants, which is difficult to acquire in the existing South Korean education system. It should also not be neglected that the retirement age was raised from 55 to 60 in 2016, but during this time, more young people, especially millennials, entered the labor market.
The dual labor market structure in South Korea, which can be characterized by the existing wage gap between large and small companies and between regular and irregular jobs, is another factor in youth unemployment. While fewer and fewer young people are employed as regular workers, young graduates prefer positions in large companies with a permanent employment contract.
While the outbreak of COVID-19 in 2020 and its economic consequences have significantly worsened the overall youth unemployment situation in South Korea, the country faces a challenge of potentially impaired growth as well as rising societal costs due to unemployment among the youth.
Unemployment in South Korea
The unemployment rate refers to the percentage of the economically active population that is not in employment but actively seeking for a job. This does not include the economically inactive population such as students, pensioners, homemakers, or discouraged workers. With a population of over 51 million, South Korea has grown to become the world's tenth largest economy, but struggles with growing unemployment, especially among the youth and elderly.Youth unemployment in South Korea
The unemployment situation of young people in South Korea has deteriorated sharply in recent years, while the number of economically active youth has declined steadily over the past decade. The number of unemployed youths increases even further when young people not covered by the unemployment rate are added, such as those who wanted employment but have not sought work or people in time-related underemployment. On average, it took young people about 10 months to find their first job.This situation can be attributed to various social, demographic, as well as labor market specific factors of South Korea. Despite the very high level of education among youth, which is reflected in the high university enrollment rate, more and more companies are demanding concrete work experience from applicants, which is difficult to acquire in the existing South Korean education system. It should also not be neglected that the retirement age was raised from 55 to 60 in 2016, but during this time, more young people, especially millennials, entered the labor market.
The dual labor market structure in South Korea, which can be characterized by the existing wage gap between large and small companies and between regular and irregular jobs, is another factor in youth unemployment. While fewer and fewer young people are employed as regular workers, young graduates prefer positions in large companies with a permanent employment contract.
While the outbreak of COVID-19 in 2020 and its economic consequences have significantly worsened the overall youth unemployment situation in South Korea, the country faces a challenge of potentially impaired growth as well as rising societal costs due to unemployment among the youth.
