Declining Job Opportunities…

According to a recent report from the National Statistical Office, the employment rate in the country has been continuously declining, with the issue particularly severe among young people. An increasing number of graduates are struggling to find jobs, leading to a rise in unemployment and a growing number of long-term job seekers. This situation is not merely a shortage of job opportunities but also a significant economic burden on individuals and a factor contributing to social instability.

Companies are reducing hiring due to economic downturns and global economic uncertainties, with some even implementing restructuring measures to downsize their workforce. Both large corporations and small-to-medium enterprises (SMEs) are increasingly prioritizing cost-cutting and operational efficiency, leading to a rise in temporary, contract-based, and outsourced employment rather than permanent positions. These changes threaten job stability for employees and contribute to a growing sense of insecurity in the workplace.

If this employment crisis and job insecurity persist in the long term, they could have widespread negative effects on the economy. The decline in job opportunities may lead to reduced consumer spending among young people, potentially slowing down domestic economic growth. Additionally, prolonged job insecurity can result in frequent job changes and career disruptions, further destabilizing the labor market. To address these challenges, collaboration between the government, businesses, and educational institutions is essential to develop fundamental and sustainable solutions.

Causes of the Declining Employment Rate

Contraction of the Job Market Due to Economic Recession and Global Economic Downturn

Recently, the global economy has slowed down, worsening the business environment for companies. Factors such as supply chain instability, interest rate hikes, and inflation have combined to make companies reduce or even freeze hiring. In the domestic market, prolonged economic stagnation has led to a shrinking job market, making job hunting increasingly competitive. As a result, job seekers, particularly young people, face greater difficulties in securing employment opportunities.

Strengthened Cost-Cutting Measures and Increased Adoption of Automation and AI

To reduce labor costs, many companies are adjusting their hiring plans while actively integrating automation systems and artificial intelligence (AI) technology. AI and robotics are increasingly replacing manual and repetitive tasks, reducing demand for human labor. This shift is not limited to the manufacturing sector but is also affecting industries such as services and finance. Consequently, job opportunities for new graduates are becoming scarcer, intensifying the employment crisis.

Shift in Hiring Trends Favoring Experienced Candidates Over New Graduates

Companies are prioritizing experienced workers who can immediately contribute to their operations, rather than investing in training new hires. This trend has made it even harder for new graduates to gain practical work experience. Additionally, more companies now require new hires to go through internships or temporary contracts before being considered for permanent positions, increasing competition among entry-level job seekers. This shift is one of the key factors exacerbating youth unemployment.

Increase in Non-Regular Employment, Leading to a Decline in Job Stability

To enhance workforce flexibility, many companies are favoring temporary, contract, dispatch, and freelance positions over permanent employment. While this approach helps businesses reduce costs and improve operational efficiency, it creates job insecurity for employees. Young job seekers, in particular, often struggle to secure stable full-time jobs and instead end up in precarious employment situations. This structural issue is likely to cause long-term imbalances in the labor market.

Intensifying Job Insecurity Caused by the Employment Crisis

Increase in Job Preparation Period and Growing Burden on Young People

As the job crisis intensifies, the period of job preparation for job seekers is becoming longer. This is not just a matter of delayed employment but also leads to various issues such as increased financial burden and rising psychological pressure. The evolving job market demands higher education, language proficiency, certifications, and internship experience, requiring young people to invest significant time and effort. Consequently, financial dependence on parents is increasing, and many face greater economic difficulties. Additionally, prolonged job preparation causes stress and anxiety, negatively affecting mental health.

Rising Preference for Civil Service and Public Sector Jobs

As job insecurity persists, an increasing number of young people prefer stable employment in the public sector over private companies. This trend is driven by lower unemployment rates and job security in civil service and public enterprises. However, with competition soaring, many candidates spend years preparing for these exams, making financial independence after graduation more challenging. Moreover, the concentration of job seekers in specific sectors has led to labor shortages in other industries, disrupting the overall labor market balance.

Increased Job Insecurity Leading to Higher Turnover Rates and Career Disruptions

In response to cost-cutting pressures, companies are reducing full-time positions while increasing contract and freelance employment, intensifying job insecurity. Consequently, employees frequently consider changing jobs to secure more stable positions, leading to higher turnover rates. Frequent job changes can result in career interruptions, making long-term career management challenging. Women, in particular, often face career disruptions due to childbirth and childcare, making reentry into the workforce even more difficult.

Expansion of the “N-Po Generation” and Rising Economic Burden Leading to Marriage and Childbirth Postponement

With ongoing job insecurity and employment difficulties, more young people are giving up on marriage and childbirth. Unstable employment makes future planning difficult, and concerns over housing and childcare expenses further discourage commitments to marriage and family. Many young individuals delay or entirely forgo marriage and having children due to financial uncertainty. This social trend exacerbates the low birth rate problem and poses long-term economic challenges for the country.

Measures to Overcome Employment Difficulties

Strengthening Government Policies for Youth Employment Support

The government is currently implementing various policies to alleviate youth unemployment, such as employment incentives, expanded internship programs, and startup support. However, short-term support alone is insufficient to fundamentally resolve the employment crisis. More systematic job training and policies that lead to sustainable job creation are necessary. In particular, expanding education on emerging technologies and providing more entrepreneurial opportunities will help young people adapt to the evolving industrial landscape.

Expanding Practical Education through Industry-University Collaboration

Companies increasingly prioritize practical experience when hiring new employees, yet university education remains largely theoretical, creating a significant gap between academia and the job market. To bridge this gap, universities and companies must strengthen their collaboration to enhance practical education. Programs such as industry-academia partnerships, on-site training, and corporate-linked projects should be expanded, ensuring that students are well-prepared for the workforce upon graduation.

Supporting Career Transition and Retraining for Entry into Emerging Industries

The Fourth Industrial Revolution is driving job creation in fields such as AI, big data, and renewable energy. However, many job seekers find it difficult to transition into these sectors due to their lack of direct experience. To address this issue, governments and businesses should actively support retraining and career transition programs. Providing opportunities for existing workers to learn new technologies will enable them to adapt flexibly to changes in the labor market.

Exploring Various Employment Opportunities such as Overseas Jobs, Freelancing, and Digital Nomadism

Traditional full-time employment is no longer the only career path available. Seeking job opportunities abroad, freelancing, or embracing digital nomadism can be viable alternatives. Especially in industries such as IT, design, and content creation, remote work is becoming more common, expanding job opportunities across borders. Individuals should explore diverse employment models that align with their skills and interests to maximize their career potential.

Strategies to Overcome Employment Insecurity

To address the ongoing employment crisis, a structural approach focusing on sustainable job creation is necessary rather than relying on short-term solutions. Simply increasing public sector jobs or implementing temporary support measures has limitations. Instead, investments in research and development within emerging industries and advanced technology sectors should be expanded. Additionally, integrating traditional industries with new sectors can generate more employment opportunities. The government must establish stable economic policies and support businesses in making proactive investments to drive job creation.

Close cooperation between businesses, the government, and educational institutions is crucial to resolving workforce imbalances. Companies must expand practical job training programs to align with evolving industry demands. The government should analyze labor market trends and industrial transformations to implement effective vocational training and retraining programs. Educational institutions must also shift from theory-based education to skill-based curriculums that align with industry needs. Such collaboration can facilitate sustainable employment and bridge the skills gap in the labor market.

As the job market rapidly evolves, individuals must develop the ability to adapt. Reducing dependence on specific jobs or industries and continuously enhancing skills across various fields is essential. Strengthening expertise in digital technology and emerging industries will significantly contribute to securing employment stability in the future. Furthermore, instead of solely focusing on traditional full-time employment, individuals should consider diverse job opportunities such as freelancing, startups, and overseas employment, embracing a more flexible career approach.

To alleviate employment instability, policy support and institutional reforms that reflect labor market changes are essential. Current labor laws and welfare systems are often designed around full-time employment, leaving many non-traditional workers, such as freelancers and platform workers, without adequate protection. Legal and institutional adjustments should be made to ensure a stable work environment for employees across all employment types. Additionally, expanding support for startups and small businesses can drive job creation, while strengthening retraining programs can assist those looking to transition into new careers. If you would like to learn more about employment, visit employment platforms like 미수다. With these policy measures in place, both flexibility and stability in the labor market can be achieved.