Unemployment rate South Korea 2023, by age

In 2023, the age group of 20 to 29 years old experienced the highest unemployment rate in South Korea. The average unemployment rate stood at 2.6 percent, marking the lowest rate in the country's history.

Unemployment in South Korea

The unemployment rate refers to the percentage of the economically active population not in employment but actively looking for a job. This does not include the economically inactive population, such as students, pensioners, homemakers, or discouraged workers. With a population of over 51 million, South Korea has grown to become one of the world's largest economies but struggles with increasing unemployment, especially among the youth and elderly.

Youth unemployment in South Korea

The unemployment situation of young people in South Korea has deteriorated sharply in recent years, while the number of economically active youth has declined steadily over the past decade. On average, it took young people nearly 11 months to find their first job. This situation can be attributed to various social, demographic, and labor market-specific factors within the country. Despite the very high level of education among youth, which is reflected in the high university enrollment rate, more and more companies are demanding concrete work experience from applicants, which is difficult to acquire in the existing South Korean education system. It should also not be neglected that the retirement age was raised from 55 to 60 in 2016, but more young people, especially millennials, entered the labor market during this time. 

The dual labor market structure in South Korea, characterized by the existing wage gap between large and small companies and between regular and irregular jobs, is another factor in youth unemployment. While fewer and fewer young people are employed as regular workers, young graduates prefer positions in large companies with a permanent employment contract.