The trend of young people "standing still" in Korea

Why are young Koreans hesitant to look for jobs?

In South Korea, the problem is even more pressing as hundreds of thousands of young people tend to stay out of the labor market, creating huge challenges for the economy .

This "standing still" trend is called by the term "NEET", which stands for Not in Education, Employment, or Training, in which young people are in a state of not having a job and not going to school or participating in training or internship programs.

Statistics from the Federation of Korean Industries show that as of mid-year, the country had more than 421,000 young people aged 20-29 in the "NEET" group - an increase of about 58% compared to a decade ago.

Youth unemployment has cost the South Korean economy about 53.4 trillion won (US$38.3 billion) between 2019 and 2023.

The woman had not worked for about a year and a half and had only recently returned to looking for work. "I felt very tired and depressed after not working for so long," she said.

This is also the common sentiment of many young Koreans when facing the problem of finding a job today. Although most young people believe that work is an important part of life, there are still too many factors that make them feel hesitant and worried when looking for a job. Among them, the biggest problem that most job seekers admit is that the market does not have many suitable jobs, making the job search time longer.

Mr. Kim Min Ji - Job seeker shared: "A year ago, it only took about 6 months to find a good job. But now I have been looking for a job for 10 months."

The "bottleneck" here is that young workers and businesses often cannot find each other. Young people often want to find good jobs with high salaries. However, this is often only available in large corporations and for experienced workers. Small and medium-sized enterprises - places that are willing to hire young workers - are of little interest to many people.

Ms. Lee Hye Min - Job seeker confided: "Nowadays, companies require experience and I feel that is my weakness."

Choi Ho Soo, a job seeker, said, "I want to find a job with a more suitable salary and benefits."

Mr. Moon Ji Hyun - Recruitment specialist commented: "Most of the job search needs are focused on large corporations, therefore, small companies have difficulty attracting talent."

The consequence of this difference is that young people who want to find jobs do not have jobs, leading to frustration and resignation. Meanwhile, businesses that need workers are completely ignored and are always in a state of shortage of human resources.

In September, the employment rate among young people in South Korea fell to 45.1%, marking the 17th consecutive month of decline.

South Korea's job market tightens for young people

With such a general picture, it is not difficult to understand why the job market has been tightening for young Koreans recently. In September, the employment rate among young Koreans fell to 45.1%, marking the 17th consecutive month of decline - the longest decline since the financial crisis in 2009.

In addition, opportunities at large enterprises - once considered the dream job for many young people - are increasingly narrowing, with last year, job growth at companies with 300 or more employees hitting a six-year low. The public sector, also chosen by many new graduates for its stability, is also tending to reduce recruitment, with the number of new jobs now falling below 20,000 positions per year.

Solving the employment problem for young people

The Bank of Korea warns that the longer workers are out of work, the more difficult it will be for them to re-enter the labor market. And to help improve this situation, the Korean government and businesses are implementing a variety of measures that go beyond simply “creating jobs,” but also focus on helping young people quickly “reconnect with the labor market.”

A job fair was recently held in Seoul, attracting the participation of 160 businesses, partners of large corporations such as Samsung, SK and Hyundai Motor. Many young people came here to look for job opportunities.

Job seeker Shin Moo Hyun confided, "Some of the companies I applied to participated in this event, so I came to review my resume and see if it was a good fit."

This is the first time in 15 years that the business community in Korea has joined together to organize a job fair of this scale. In response to the government's call to create job opportunities for young people, major corporations have announced plans to hire 40,000 new employees and support partner companies in recruiting.

Mr. Gang Jong Won - Recruiter commented: "We offer good salaries. Starting salaries will increase in stages."

However, to bring hundreds of thousands of young people who are "standing still" back to the labor market, Korea cannot rely only on short-term projects.

Since last year, the South Korean government has been implementing a comprehensive youth employment support program, with a budget of 1 trillion won (about $700 million), expanding "work experience" opportunities in both the public and private sectors. In September, Seoul announced a further program to support young people seeking jobs, which includes building the first database of unemployed youth.

Mr. Kim Young Hoon - Minister of Employment and Labor of Korea commented: "The Korean government is looking to establish contact with 15 - 20% of the young people who are out of the job market. The government will contact these people through email or other means and provide appropriate support."

South Korean officials are also developing virtual workplaces where young people can participate in simulated interviews, group challenges and real-life tasks, which foster initiative and help young people discover what they really want to do. Some localities are also testing a model that combines practical skills training with work experience at small and medium-sized enterprises, while providing six months of financial support for young workers.

Source: https://vtv.vn/xu-huong-gioi-tre-dung-yen-tai-han-quoc-10025102410442687.htm