'Graduated from Prestigious Universities and Earned Advanced Degrees, Yet Unemployed'... Number of Highly Educated Young Jobless Hits 13-Month High

Employment Mismatch Worsens
Long-Term Unemployment Hits Highest Level Since 1999
Demand Gap Widens Between Large Corporations Seeking Experienced Workers and Young Job Seekers

The employment difficulties faced by highly educated young people are leading to a rise in long-term unemployment. The number of long-term unemployed individuals in their 20s and 30s with at least a four-year university degree reached its highest level in 13 months, and the total number of long-term unemployed also hit a four-year high.

According to Yonhap News Agency, citing the National Statistical Portal (KOSIS) of the National Data Office, the number of long-term unemployed-those who have been seeking jobs for more than six months without success-stood at 119,000 as of last month, as reported on November 16.

This is the highest figure in four years since October 2021 (128,000). During the COVID-19 pandemic, from May 2020 to December 2021, the number of long-term unemployed exceeded 100,000, then declined after the pandemic, but has recently surged again.

Job seekers are browsing recruitment information at a job fair. Photo by Yonhap News Agency

Last month, long-term unemployed individuals accounted for 18.1% of the total 658,000 unemployed. This is the highest October percentage since statistics began to be compiled in 1999, and even higher than in October 1999 (17.7%), when the aftermath of the foreign exchange crisis was still being felt. The long-term unemployment rate was in the single digits at 9.3% in April this year, but rose to double digits in May and nearly doubled in just six months.

The increase in long-term unemployment is centered on young people in their 20s and 30s with at least a four-year university degree. An analysis of microdata from the Economically Active Population Survey shows that there were 35,000 long-term unemployed in this group, the highest level in 13 months since September last year. By age group, those aged 25 to 29 accounted for the largest share at 19,000. The data also show a growing number of highly educated young people, including those with master's and doctoral degrees, continuing to seek employment for extended periods.

Furthermore, despite the rapid decline in the overall youth population, the number of highly educated long-term unemployed continues to rise, which has been pointed out as a problem. The youth population is decreasing by around 200,000 each month. It fell from 8,016,000 in March to 7,994,000 in April, dropping below the 8 million mark.

Kim Kwangseok, a research fellow at the Korea Economic and Industrial Research Institute, stated, "Highly educated young people prefer to work at large corporations, but companies mainly seek experienced workers, resulting in a typical mismatch." He also predicted, "The reduction in domestic employment capacity due to 350 billion dollars in industrial investment in the United States, as well as the advancement of AI technology, could structurally worsen youth employment difficulties."