Go to contents

Serious Youth Unemployment

Posted November. 14, 2002 22:39,   


In the midst of serious employment trouble, small companies and hard occupation companies have a difficulty in a labor shortage.

▽Avoidance of Hard Work with High Salary 〓 Samsung Corning Precision Glass Inc.(SCP) intended to hire 30 production employees before expanding a factory, but they just hired 20 employees. Yu Jun-Won, assistant manager of the HR team explained, “It is because there is the avoidance of local working and production employment in spite of high welfare level.”

Lotte Chilsung planed to hire the salespeople of a full-time job. However, there is the shortage of people. Besides, for a general office work with a small salary, there are many applicants.

According to the results of investigation for 101 firms conducted by Job Link (www.joblink.co.kr), for the question of "do you have difficulties in the employment, 56 firms, 55% of all responding firms answered `Yes`.

For the question asked about the type of the work in difficult employment, 13 firms answered `Production Employment`. 7 firms answered, “It is hard to hire employees because of small applicants for the position of sales. In addition, there is the telemarketing, logistics in difficult employment.

Besides, there are enough applicants for a research & engineer (12 firms) and special professional job (11 firms), but there is the shortage of employees with professional knowledge.

▽Troubled Small Companies 〓 The large companies have a large number of applicants, on the other hand, the small & medium companies haven`t got a proper employees.

According to the results published on November 14 from the investigation on `an opinion of the small company`s policy direction` for nationwide 306 small & medium companies, conducted by Small & Medium Business Administration (SMBA), 28.2% firms said that one of policies for the future management is solving the employment trouble.

They said that the labor shortage is more troubled over other assignments of active financing (21.4%), product demand expansion (20.4%) and technical development (17.5%). As the solution of the labor shortage, 27.5% respondents said `Expanding of the foreign industrial trainees and management strengthening`.

▽Serious Unemployment Rate of the Youth 〓 According to `Employment Trend of October` published by Korea National Statistical Office(NSO) on November 14, the unemployment rate of the month is 2.6% and shows a relative stable tendency maintaining 2% for 6 months. However, the unemployment rate of age 20∼29 is 5.9%, doubled the whole unemployment rate.

There are 246,000 unemployed people for the above ages, the half of the total unemployed people. NSO analyzed that such increase of the youth unemployment rate is because young people avoid the employment of 3D industries focused on the small & medium companies.”