Youth Unemployment Reaches Crisis Levels in South Korea

Strategic Insights -

The problem of youth unemployment in South Korea has reached a serious pitch, with the government being pushed to prepare immediate measures. According to official statistics, the number of jobless youth aged 15-34 totaled 1,394,000 in January, up 54,000 from the same month last year. The jobless rate for that age bracket was 8.5 per cent, over two-fold of the nation's unemployment rate of 3.8 per cent. A critical issue is that the number of youths not seeking employment, known as the "not in employment, education or training (NEET)" group, has increased substantially, accounting for the lion's share of the unemployed youth. This trend is a serious concern as it signifies a decline in the quality of work for young people who may eventually enter the labor market.

Key Takeaways:

  • The number of jobless youth aged 15-34 in South Korea totaled 1,394,000 in January, an increase of 54,000 from the same month last year.
  • The jobless rate for this age bracket was 8.5 per cent, more than double the nation's unemployment rate of 3.8 per cent.
  • Youths aged 15-34 who are not seeking employment, categorized as "not in employment, education or training (NEET)," grew to 1,032,000 in January, up 36,000 from a year ago.
  • The NEET generation accounted for 74 per cent of all unemployed youth.
  • The growth of the NEET generation is a serious problem as it means young people are missing the normal timing of entering the labor market and may never be economically active.
  • Most people in the NEET group gave up after numerous attempts to find jobs ended in failure.
  • Big businesses are urged to create more jobs and promote cooperation with colleges and universities to absorb the NEET generation into the labor market.
  • Government incentives and an improved education system are also recommended to increase new employment and meet the needs of the labor market.

Statistics:

  • The number of jobless youth aged 15-34 totaled 1,394,000 in January, up 54,000 from the same month last year.
  • The jobless rate for this age bracket was 8.5 per cent.
  • The nation's unemployment rate was 3.8 per cent.
  • The number of youths in the NEET group grew to 1,032,000 in January, accounting for 74 per cent of all unemployed youth.
  • The NEET group accounted for a lion's share of the unemployed youth due to the increase in reclusive individuals who refuse or fail to communicate with society and worsening labor market conditions.

Sources:

  • Yonhap