More graduates delay finishing school amid hiring freeze

A student walks past job postings at a university job center in Seoul, July 24. Newsis

Kim, a 26-year-old physics graduate hoping to work in semiconductors, says he has applied even to jobs outside his field but has repeatedly failed to pass the document screening stage, leaving his confidence badly shaken.

“If I had known it would be like this, I would have delayed graduation like my friends,” he added with a sigh.

With the job market tightening, more young people are choosing to delay graduation and remain “fifth-year students.” Instead of risking unemployment after graduation, they see advantages in keeping student status, which provides access to career counseling, training and other benefits.

According to data from the Korea Educational Development Institute released on Sunday, the number of students deferring graduation reached 17,597 last year, up by about 2,500 from 2023.

Statistics Korea also reported that it now takes an average of four years and four months to complete college, the longest since records began in 2007.

Creative ways to postpone

Graduation delays take many forms. Some complete their credits but officially defer graduation by paying a fee of around 100,000 won ($75) per semester. Others delay submitting required certificates until they secure a job.

Kang Dae-yun, a 25-year-old economics major at Sungkyunkwan University, left some credits unfinished and extended his studies by taking a leave of absence.

He uses his school account to access paid subscriptions such as the Wall Street Journal and brokerage reports to prepare for employment.

Employers’ growing preference for experienced hires is another factor. A March survey by the Korea Employers Federation of 500 member companies with at least 100 employees found that 81.6 percent cited “work experience” as the most important qualification for new recruits.

“Even for entry-level jobs, they want experience or specific certifications. The only option is to delay graduation, apply for internships or keep studying,” said Choi, a 26-year-old public administration graduate from a Seoul university.

But opportunities to gain experience are scarce. Last month, Korea’s job vacancy ratio — the number of available jobs per job seeker — stood at 0.4, the lowest since the pandemic year of 2020 and down from 0.67 in 2021.

Youth employment has also declined for 28 straight months since November 2022, according to the Korea Labor Institute.

“It feels like job postings at medium-sized or larger firms have completely dried up over the past year,” said Park, a 27-year-old mechanical engineering graduate.

Experts stress that the solution lies in addressing Korea’s dual labor market. Raising wages and improving conditions at small and medium-sized enterprises would expand opportunities for young workers.

“In Korea, a person’s first job largely determines their career and life trajectory,” said Kim Yu-bin, head of the employment policy research division at the Korea Labor Institute. “Existing youth policies that focus on income support are not enough to solve the hiring crisis. Breaking down the dual labor structure is the only real way forward.”

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.