Youth unemployment soars to 12.5%, an all-time high

Korea’s youth unemployment soared to its highest level on record in February, as economic slowdown takes its heaviest toll so far on fresh and inexperienced job candidates.

According to Statistics Korea, the jobless rate for workers aged between 15 and 29 was 12.5 percent last month, up 1.4 percentage points from the same month in 2015. From a month ago, the unemployment rate grew by 2 percentage points. 


The jobless rate among the young tends to be higher in February when most college students graduate, but this year’s rate is the highest since records started being kept in June 1999.

The overall jobless rate was 4.9 percent last month.

“A one-off factor is largely attributable to the deterioration in the youth job data, but it is true that we’re seeing the issue seriously,” Kim Gyeong-sun, a Labor Ministry official said in a press conference.

A civil service exam for the lowest rank that took place at the end of January, drew 222,650 applicants, about 32,000 more compared to the previous year. This resulted in half a percentage-point uptick in youth unemployment, the official said.

Wednesday’s data showed deterioration in overall unemployment, with the jobless rate for all age groups rising to a six-year high of 4.9 percent. The economy added 223,000 new jobs in February, the fewest since April 2015.

Monthly job growth stood at 339,000 in January, sharply down from December’s 495,000, which was the largest in 16 months.

The overall employment rate came in at 65 percent, up 0.1 percentage point from a year ago.

Coming alongside plunging exports, slowing production and consumption at home, the employment data was seen as another sign of Korea’s economy heading into rougher waters than previously expected.

Finance Minister Yoo Il-ho, however, sought to curb economic pessimism, saying that the government is sticking to its 2016 job outlook of 350,000 new jobs. The economy last year added 337,000 new jobs.

“February readings are not good, but it’s early to talk about a revision to the government’s job creation target,” he said in a forum in Seoul.

Next month, the ministry will unveil a set of policy measures to support youth and female employment, he added.

By Lee Sun-young (milaya@heraldcorp.com)