Record-High College Graduates in South Korea Not Working or Seeking Jobs
The number of South Koreans with college degrees who are neither working nor seeking employment has reached an all-time high in the first half of this year, according to government data released on Sunday.
Key Statistics
Total Economically Inactive: There were 4.058 million people with a college degree classified as part of the "economically inactive population." This term refers to those aged 15 or over who are unable or unwilling to work, including students, homemakers, those preparing for government exams, and people who have given up on employment altogether.
Increase from Previous Year: This number increased by 72,000 compared to the same period in 2023, marking the highest figure for the first half of the year since records began in 1999.
Historical Context: The previous record was in the first half of 2021 during the COVID-19 pandemic, which saw the economically inactive population surpass the 4 million mark for the first time, reaching 4.048 million. The figure dropped by 130,600 in 2022 but has risen again in the subsequent two years.
Ratio Among Non-Workforce: The proportion of college graduates among the non-working population is at a record high of 25.1 percent, surpassing the 25 percent mark for the first time.
Youth Impact: Among the economically inactive with higher education, 591,000 are aged between 15 and 29, highlighting the difficulties faced by the country's youth. Last year, 398,000 young people reported they were not working without citing a specific reason, an increase of 13,000 from the previous year.
Implications
This trend of increasing economic inactivity among college graduates is concerning for several reasons:
Economic Impact: A high number of educated individuals not participating in the workforce can lead to a loss of potential economic contributions and innovation.
Youth Unemployment: The significant number of young, educated individuals not seeking employment hints at systemic issues within the job market, including possible mismatches between education and job opportunities or insufficient job creation.
Social Concerns: The increasing number of people, especially the youth, giving up on employment could lead to broader social and economic challenges, such as increased dependency ratios and potential socio-economic disenfranchisement.
Government and Policy Response
The South Korean government may need to address these issues through various measures:
Job Creation: Enhancing job creation efforts, particularly in sectors that can absorb highly educated individuals.
Skill Matching: Implementing programs to better match educational outcomes with market needs, potentially including reforms in higher education curricula.
Support Systems: Providing stronger support systems for those preparing for employment, including career counseling and mental health support to address disillusionment and job market frustrations.
As the situation evolves, close monitoring and responsive policy adjustments will be critical to address the challenges posed by the increasing number of economically inactive college graduates.
