Youth employment rate falls to a 29-year low

Youth unemployment rate dropped to a 29-year low in March as the entrenched economic downturn prompted companies to avoid new hiring. The figure is even lower than that tallied immediately in the wake of the currency crisis in 1997 when the country was suffering from a severe jobless situation. According to Statistic Korea on Wednesday, the employment rate among people aged 15-29 was 38.7%, down 1.4 percentage points from a year earlier. The reading marked the lowest since 38.5 percent in January 1984.

The number of jobs for younger people also continued to fall. Total employment of last month increased 249,000 year-on-year, but the number of jobs in the 19-25 age group fell by 128,000, marking the 11th straight month of decrease since May last year. As a result, total employment rate (for those aged 15-64) fell by 0.2 percentage point from a year ago to 63.4 percent. Jobs experts say falling employment rate is due to slowing economy and stringent labor market. Lee Geun-tae, a researcher at LG Economic Research Institute, said, "When the economic structure is changing and the economy is slowing, existing employees tend to remain in current jobs, thus hurting younger people who are trying to enter the job market."

jarrett@donga.com