Recently, according tomedia reports, the Bank of Korea report shows that this year about three out of every 10 South Koreans are overqualified, lack of high-quality jobs, underemployment rate of 30%. The report shows that the number of Koreans with overqualified work has reached a record high this year, with about three out of every 10 South Koreans over-qualified because of job mismatches. The underemployment rate (also known as “inadequate employment”), i.e. the proportion of workers with higher levels of education than they are required for work, exceeded 30 per cent for the first time.
The report points out that the lack of high-quality work is the main reason for the steady rise in underemployment, which has been soaring since the onset of the global financial crisis in 2008, when it crossed the 25 per cent mark for the first time.
From 2000 to 2018, the number of university graduates grew at an average annual rate of 4.3 per cent, while the number of so-called “proper jobs”, such as managerial and professional work, grew by 2.8 per cent. The Bank of Korea classifies services and sales as underemployed, with wages 38 per cent lower than proper work.
In these areas, less than 5 per cent of people were promoted after one year and found suitable jobs, while 11 per cent were promoted after three years, indicating that their jobs did not provide the opportunity for mobility.
Among OECD countries, South Korea has the highest university enrolment rate at 70 per cent. South Korea needs job training and measures to improve labor mobility to reduce inefficiencies in talent capital caused by over-education, the central bank’s report said.