Unemployment in South Korea - statistics & facts
As one of the world’s poorest aid-recipient countries in the 1960s, South Korea has experienced dramatic economic growth through its export-oriented, labor-intensive industrialization and has grown to become one of the largest economies in the world. Against the backdrop of this economic miracle, the overall unemployment rate in South Korea has remained comparatively low among the countries of the Organization for Economic Cooperation and Development (OECD). A closer look at actual unemployment, however, reveals a somewhat different picture.
One of the biggest concerns in South Korea is that both unemployment and hidden unemployment are particularly high among young people. In 2023, the youth unemployment rate was more than double the overall unemployment rate. While there has been a decline in youth unemployment over the past three years, this decrease can be partly attributed to the increasing number of young people taking on non-regular temporary positions within the hospitality industry. These temporary workers not only earn significantly lower wages compared to regular employees but also face the risk of being directly impacted by deteriorating economic conditions. Furthermore, despite the decreasing trend in youth unemployment, there is a concurrent rise in young individuals Not in Education, Employment, or Training (NEET).
Hidden figures and youth unemployment
The seeming discrepancy between the figures and reality stems in part from the fact that the traditional unemployment rate only captures unemployed people who have actively sought employment in the past four weeks and were ready to start work immediately. Persons who would have liked to have started work but have not actively looked for a job in the past four weeks are not included here, such as job seekers who have taken a short vacation. If this “potential labor force” is taken into consideration, the combined unemployment rate, the so-called hidden unemployment, doubles.One of the biggest concerns in South Korea is that both unemployment and hidden unemployment are particularly high among young people. In 2023, the youth unemployment rate was more than double the overall unemployment rate. While there has been a decline in youth unemployment over the past three years, this decrease can be partly attributed to the increasing number of young people taking on non-regular temporary positions within the hospitality industry. These temporary workers not only earn significantly lower wages compared to regular employees but also face the risk of being directly impacted by deteriorating economic conditions. Furthermore, despite the decreasing trend in youth unemployment, there is a concurrent rise in young individuals Not in Education, Employment, or Training (NEET).
