Park Han-sol reports on Korea's financial regulators, along with fintech and insurance. She previously wrote about the art world, from biennales and exhibitions to fairs and auctions, with a focus on Seoul and the figures shaping the scene. Before joining The Korea Times, she spent a year at ABC News' Seoul bureau, contributing to coverage of major Asia-Pacific events.
Why Korea's college graduates are falling behind high school graduates in job market
Job listings are displayed at a career development center at a university in Seoul, April 20. Yonhap
By Park Han-sol
In a striking reversal of Korea’s long-held belief that a university degree guarantees better job prospects, college graduates in their late 20s are now facing higher unemployment rates than those with a high school diploma, government data showed Tuesday.
According to the Ministry of Data and Statistics, the unemployment rate for university graduates aged 25 to 29 stood at 7.7 percent in the first quarter, higher than the high school graduates’ 7 percent for the same age group.
This reversal first appeared in 2023 and has persisted for four consecutive years — the longest stretch since the agency began compiling the data in 2000.
The pattern seems to be unique to people in their late 20s, as university graduates still have better chances of landing jobs across nearly every other age bracket.
Experts say the shift reflects a labor market reshaped by changing hiring practices and artificial intelligence (AI). Large corporations, long considered the ultimate destination for young degree holders, are increasingly prioritizing experienced, job-ready recruits over entry-level office workers. Also, AI is beginning to absorb many routine white-collar tasks once handled by junior staff.
“The labor market ultimately comes down to supply and demand. Korea’s university enrollment rate has remained exceptionally high for years, creating an oversupply of highly educated workers. But as AI spreads, demand for inexperienced white-collar graduates is starting to weaken,” Hong Sok-chul, an economics professor at Seoul National University, said.
He added that the companies’ move toward rolling recruitment and experience-based hiring has made it even harder for young graduates to find jobs.
At the same time, many degree holders remain fixated on securing stable, higher-paying office jobs at major corporations, extending their job searches as competition intensifies for a shrinking pool of coveted positions.
By contrast, demand remains relatively strong for high school graduates in jobs less vulnerable to automation, including manufacturing, technical, skilled trade and service positions. “In many of those sectors, demand still exceeds supply,” Hong said.
The trend has drawn renewed attention during the recent semiconductor boom with reports that production workers at chipmakers such as SK hynix received bonuses worth hundreds of millions of won. This year, the company restricted eligibility for some manufacturing roles to high school and vocational college graduates, highlighting changing perceptions of blue-collar industrial jobs.
The professor stressed that the phenomenon underscores a deeper mismatch between Korea’s education system and the rapidly changing economy. “The goal should not simply be to send more students to university. Education policy needs to evolve alongside industrial and technological change and cultivate workers with skills that match labor market demand.”