There are a few indicators which have pointed out towards South Korea making a good economic recovery. The output in the country has been increasing due to exports. In addition to that, consumer spending in South Korea has improved thanks to growing welfare financing by the country’s government.
Despite all this, South Korea – fourth-largest economy in Asia – is having difficulties with creating new jobs for college graduates, despite the fact they pull all-nighters in an attempt to pass entrance exams of big companies. The joblessness problem among the Korean youth passed 10 % in February 2014 and has become a much bigger problem as opposed to the country’s rapidly aging population.
The overall employment rate in South Korea is over 64 percent and this is on par with the OECD average. On the other hand, for people who are aged between 15 and 29, the employment rate is at 40 percent. According to analysts, the figure revealed is odd, given the fact that the overall job figures have been on the rise in the country. There are many factors which contribute to the increasing unemployment of Korea’s youth.
One of the reasons is that men have to mandatorily do military service, which forces them to delay job hunting and there is a small number of career opportunities for young women.
Photo Credits: Bloomberg