There is a surplus of highly educated people in South Korea, and the number of young unemployed increases

  In recent years, the surplus of highly educated people has become a hot topic in South Korea. While the unemployment rate of young people remains the same, many small and medium-sized enterprises are struggling with labor shortages. The number of highly educated people who have graduated from college or above is increasing, and most of them are concentrated in the recruitment of large enterprises. Although small and medium-sized enterprises have paid high salaries, it is difficult to curb the loss of talents. Some newly hired employees often resign within one year. Industry insiders pointed out that by 2015, there will be a serious surplus of highly educated talents in South Korea, and seeking effective countermeasures has become the top priority of the South Korean government.
  ”Korea Economic News” pointed out that in the 10 years from 1995 to 2005, the number of small and medium-sized enterprises with less than 49 employees increased by 1.51 million, while the number of large enterprises with more than 300 employees decreased by 710,000 in the same period. Despite the overall increase in the number of employed persons, the unemployment rate among young people aged 15 to 29 reached 7.9% in 2006, and the employment difficulties of young people have not been alleviated.
  Industry analysts pointed out that the sharp increase in highly educated people and the over-abundance of academic qualifications in the flow of talents to large enterprises are one of the reasons for the above-mentioned problems. According to statistics from the Korea Statistics Office, among the 364,000 unemployed young people in South Korea in 2006, 42.9% were those with a college degree or above.
  According to a survey by the Korean Ministry of Labor, companies with more than 5 employees had a labor gap of 205,000 in 2006, of which 197,000, accounting for 96%, were in small and medium-sized enterprises. According to a survey of newly recruited employees conducted by the Korean employment portal in May this year among 186 companies (63 large companies and 123 small and medium-sized enterprises), the hiring ratio of large companies can reach the predetermined 96.1%, while that of small and medium-sized enterprises is only 77.7%. The rate of newly hired employees of small and medium-sized enterprises within one year is as high as 28.5%. Some small and medium-sized enterprises in Gyeonggi Province that supply power materials to large companies complained that, even with the recent increase in recruitment, it was only those who graduated from college or above, and it was difficult to secure corporate talent; During this period, I quit and changed jobs, the personnel cost increased, and the production efficiency decreased.
  On the other hand, some large enterprises that like highly educated people have begun to reduce the scale of employment, and instead of recruiting new people, the number of layoffs is also increasing. According to a survey report published by the Korea Vocational Development Institute last year, by 2015, there will be a surplus of 548,000 highly educated people in the Korean labor market.
  As one of the solutions to the difficulty in finding employment due to excess academic qualifications, experts from the Korea Employment Information Institute pointed out that it is necessary to educate students that they should not blindly enter universities, but should consider and choose their own life path. University education, it is important to make students’ horizons broadened and their values ​​diversified.
  A professor from the Department of Economics of Yonsei University pointed out that the employment of high value-added service industries should also be diversified, and it is necessary for the service industry to absorb young people with high academic qualifications.

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