1 in 4 University Graduates Overqualified for Jobs

Published on 2013/07/21 | Source

A growing number of university graduates are willing to accept jobs for which they are overqualified as the number of positions suitable for their education dwindle. Some 3 million people with university degrees are now jobless and more and more young Koreans give up looking for work.

◆ Jobseekers Lower Their Sights

Unemployment rate is especially high among young Koreans who just graduated from university. The number of employed Koreans in their 20s has been shrinking for the past 14 months, and the jobless rate among people aged 15 to 29 peaked at 9.1 percent in February and stood at 7.9 percent in June.

The tough job market has prompted young jobseekers to lower their sights or to lie about their credentials on their resumes. According to the Korea Research Institute for Vocational Education and Training, 24 percent of university graduates are reducing their expectations in searching for work, the highest rate in the 12 advanced nations in the OECD.

The U.K., France and Japan also have many university graduates who are lowering their sights with 18, 15 and 14 percent, but that is still significantly lower than here. The average among all OECD member nations is 9 percent.

The main reason behind the high rate in Korea is that there are more young jobseekers whose educational backgrounds are higher than what employers are looking for. As of 2011, 64 percent of Koreans aged 25 to 34 had university degrees, the highest in the OECD, where the average is 39 percent.

◆ 3 Million Graduates Out of Work

Many more university graduates are unable to find any work. Hyundai Research Institute analyzed data from Statistics Korea and found that the so-called economically inactive population stood, including those who have given up looking for work, at 3.09 million in the first quarter of this year, a record high.

The increase of jobless graduates is expected to continue. According to estimates by the Ministry of Employment and Labor, a shortage of 320,000 high school leavers is expected by 2020, in contrast to a surplus of 500,000 in university graduates.

"To resolve the imbalance in academic levels and jobs, we need to change the belief that university degrees are essential to any career, and create more jobs for people with degrees", said Kim Kwang-seok at the institute.