Young Koreans picky about jobs remain unemployed

The unemployment rate in all age groups fell last year except for those in their 20s.

Job seekers flood a job fair at Pukyong National University in Busan on Nov. 9, 2022. [SONG BONG-KEUN]

The unemployment rate in all age groups fell last year except for those in their 20s.

Young people's pursuit of professional jobs, like that of doctor or lawyer, and the overall decline of the youth population are some of the contributing factors.

A gloomy outlook in the youth employment market may continue this year amid a recent slowdown in the economy, academics say.

According to the latest data from the Korean Statistical Information Service, the number of unemployed stood at 666,000 in November 2022, down 9.3 percent from the same month a year earlier. The number jobless people in their 20s, rose 7.6 percent on year, accounting for one third of the total unemployed.

The jobless rate for people in their 20s continued to rise for three months in a row since September 2022.

“The number of employed among young people fell for the first time in 21 months,” the Ministry of Economy and Finance said.

Study rather than work

A twenty-seven-year-old university student, who will get a bachelor degree in February, has been studying to get into a law school.

“I took the Legal Education Eligibility Test [LEET] for the first time last year but wasn't satisfied with the results so I am planning to study again this year,” the student said. “Although I may start working a little late than other people, I think my time will be worth it once I have a professional certification.”

More people are taking the LEET to get into law school. A total of 13,196 people took the LEET last year, and more than 80 percent of them were under 32.

With young Koreans chasing after elite jobs in an already-shrunken youth population, small- and middle-sized enterprises (SMEs) are facing challenges. In the first half of last year, the number of unfilled positions at SMEs with fewer than 300 employees was 164,000, up 71.3 percent from the first half of the previous year. The unfulfilled vacancy rate was 14.7 percent, nearly three times of that of large companies with more than 299 employees (5.6 percent) — likely due to SME salaries, benefits and social reputation failing to meet the standards of young people these days.

“We get almost no applications from younger people,” said a senior manager at from a small- and medium-sized business, complaining of a mismatch of jobs available compared to the limited number positions that actually satisfy the conditions that young people are looking for.

The decline in delivery workers

After the Covid-19 wave hit the country, many young people were able to find jobs thanks to platform work, or any work organized through an online platform — most commonly delivery workers.

But since the middle of last year, the popularity of delivery services decreased following the end of social distancing rules, eventually leading to a drop in profitability of delivery work.

People are now quitting these jobs.

One man in his 30s who is now in his third year working in delivery earns four to five million won ($3,100 to $3,900) to per month while working 50 hours per week. But after paying for gas, insurance and maintenance, there is hardly anything left, he says.

“The profit that once rose to 8,000 won to 10,000 won per delivery as per the peak hours has fallen to 4,000 won to 5,000 won since a few months ago,” Hwang said. “People around me are starting to quit, and I am thinking of it too.”

Last year, the number of delivery workers increased by 134,000 from the previous year to 800,000 people, but the figure decreased by 11.3 percent among those in their 20s.

The graying of Korea

Another factor contributing to the rise of unemployment among those in their 20s is the falling number of young people. The number of people in their 20s stood at around 6.23 million as of November last year, down 2.7 percent from a year ago.

On the other hand, the number of people 60 or older is growing fast. Eventually older people have to compete with younger for jobs. This is intensified by the government mulling an extension in the retirement age from the current 60, such as by the Elderly Employment Promotion Subsidies System — or giving subsidies to companies that abolish retirement ages and re-employ retiring workers.

"Hirings slowed as both private and public institutions have retrenched, and as the labor market became rigid, more young people have become reluctant to start their careers in small and medium-sized companies,” said Kim Dong-heon, a professor of economics at Korea University.

“If the government extends the retirement age in addition to this, job openings may drop for a certain period of time in some industrial groups, thus a sophisticated review is necessary,” Kim said.

BY JEONG JIN-HO, SEO JI-EUN [seo.jieun1@joongang.co.kr]