SEOUL – More South Koreans with college degrees are now out of the workforce than those who only finished middle school. <\/p>\n
It is the first time this has happened, and it reveals a growing fault line in the country\u2019s labour market.<\/p>\n
New data released by Statistics Korea on July 22 showed that 3.048 million people aged 15 and older with a four-year university degree or higher are not working and not looking for work.<\/p>\n
That number now slightly surpasses the 3.03 million among those whose education stopped at middle school.<\/p>\n
Just 10 years ago, the gap between these groups was more than one million in the opposite direction.<\/p>\n
The shift reflects a wider imbalance. South Korea has one of the world\u2019s highest university enrollment rates, but the job market has not kept up. <\/p>\n
Many recent graduates are preparing for exams, stuck waiting for job openings or have left the labour market entirely. They are statistically classified as \u201cnon-economically active\u201d, meaning they are not employed or actively seeking a job.<\/p>\n
Behind the numbers is a tight hiring environment. <\/p>\n
According to a 2025 survey by the Korea Enterprises Federation, only 60.8 per cent of large companies said they planned to hire new staff this year. That is the lowest share since 2022.<\/p>\n
College-educated job seekers tend to target high-value sectors like tech or finance. But growth in these areas has slowed. That slowdown is forcing many graduates into limbo, especially as entry-level positions shrink. <\/p>\n
South Korea\u2019s service industry offers little relief. <\/p>\n
A July report from the Bank of Korea found that labour productivity in domestic services, including IT and retail, was just 39.7 per cent of the manufacturing sector in 2024. <\/p>\n
That ratio has barely moved in 20 years.<\/p>\n
Compared to other countries, the gap is just as wide. According to the BOK report, South Korea\u2019s service-sector productivity measured only 51.1 when indexed against the United States at 100. <\/p>\n
The OECD average was 59.9. Germany reached 59.2. Japan stood at 56. THE KOREA HERALD\/ASIA NEWS NETWORK<\/p>\n
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