Korea’s Education Paradox: Why the Most Educated Still Struggle to Find Work

1. What’s Happening
   South Korea has one of the highest rates of university education among young adults, but youth unemployment and underemployment remain persistent. Many graduates compete for a limited number of stable, well-paying jobs, while small and mid-sized firms struggle to attract talent. As a result, highly educated workers are often stuck in temporary roles, internships, or jobs unrelated to their field of study.

2. What It Means
   This mismatch signals a structural problem in Korea’s labor market rather than a lack of talent. When education no longer guarantees opportunity, young workers delay major life decisions such as marriage, housing, and family formation. Over time, this weakens consumer confidence, reduces long-term productivity, and increases pressure on public systems.

3. Watch Points

• Changes in hiring practices by large corporations versus SMEs

• Government policies linking education more closely to labor demand

• Shifts in graduate preferences toward overseas work or non-traditional careers

Source
Arirang Insight. (2025). Education and employment mismatch in South Korea. Internal analysis based on labor market trends.