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1 in 5 out of work for at least 6 months due to expectations mismatch

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By Lee Kyung-min
gettyimagesbank

gettyimagesbank

One in five jobless people failed to find employment despite putting in efforts for over six months, the highest figure since 1999 at the height of the Asian financial crisis, government data showed Tuesday.

The trend was most pronounced in the 15-to-29 age group. Many of them cited low pay and unfavorable working hours for not taking jobs, indicative of an overall mismatch of expectations between jobseekers and employers.

Observers warn that Korea's labor market will lose vitality, constrained by both this age group and people not seeking employment for any particular reason categorized as "on rest" in employment surveys and therefore considered economically inactive.

According to Statistics Korea, 564,000 remained jobless in August.

Of them, 113,000, or 20 percent, had tried looking for work for at least six months.

The figure exceeding 100,000 is concerning since the previous occurrence was associated with large job cuts between October 2020 and July 2021 during the COVID-19 pandemic.

The number has since peaked out, only to register an uptrend for the six consecutive months from March to August.

Also noteworthy is the August figure raising the monthly average for January to August to 98,858, up 10,448 from the same period last year.

Of them, the 15-to-29 age group constituted 32.4 percent, followed by those in their 30s (23.3 percent).

Tuesday's data is in contrast with the two months of decrease in the number of unemployed since July.

Separate Statistics Korea data showed that 24.7 percent of those who remained unemployed for over six months with less than a year of work experience said unsatisfactory working conditions prompted them to stay out of work.

This was the second-most common reason for not working among those surveyed. The conclusion of temporary or seasonal work, associated with short-term low-paying positions, topped the list at 26.4 percent.

The wholesale and retail sector accounted for most of their last jobs at 18.9 percent, followed by manufacturing at 15.9 percent and health care and social welfare at 13.7 percent.

Meanwhile, the number of those "on rest" surpassed 2.5 million in August, up 10.6 percent, or 245,000, from the previous year. It was the highest August figure the agency had recorded in the 21 years it has been compiling related data.

Lee Kyung-min lkm@koreatimes.co.kr


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