By Yoon Ja-young
The number of people preparing to land jobs reached 650,000 in October, the highest number ever. Since they are virtually “jobless” though they are not included in the unemployment data, the “real” unemployment rate stands much higher than the official statistics, experts point out.
According to Statistics Korea, a total of 653,000 are preparing themselves to get jobs. For instance, they may be preparing for a state test to become a government worker, trying to build up qualifications such as high English test scores, or endeavoring to earn diverse licenses or certificates.
The figure is an increase of 16,000 from a year ago, and the highest since 2003 when the statistical office started compiling the data.
The number of those preparing for jobs increased, especially among those in their 30s. An official at the statistical office explained that college students are delaying graduation while it is taking more years than before to pass the state exam to become a government official due to fierce competition.
Since these people are not actively looking for jobs at the moment, however, they are not included in the unemployment data. They are categorized as economically inactive.
However, analysts point out that the increase of those who are preparing for jobs actually means surging unemployment and that the currently used unemployment index doesn’t reflect the reality.
Lee Jun-hyup, an economist at Hyundai Research Institute, for instance, suggests adopting a new job market index which includes the people who are involuntarily working as non-regular workers or part-timers who could work more hours. He estimated that around one out of three young people will likely be regarding themselves as virtually jobless, which is much higher than the official 8.5 percent youth unemployment rate last month. The country’s total unemployment rate stood at 3.4 percent in October, the highest October figure since 2005.
The ongoing corporate restructuring at troubled shipbuilders and shipping companies are also weighing on the job market. The country’s top three shipbuilding companies ― Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding and Marine Engineering (DSME) ― shed around 3,000 jobs in the third quarter, following a 3,000 drop in the first half of this year. They are likely to continue decreasing the workforce in the fourth quarter this year and the next year as well as the global demand for ships continues to fall. Samsung Heavy Industries, for instance, announced in its self-rescue plan in June, that it will decrease its total workforce by 30 to 40 percent by 2018. The job market is even more serious when taking into account supplying companies for the shipbuilders. DSME is also planning to decrease its workforce to 10,000.