[Economic Focus] Despite Semiconductor Boom, Graduate Unemployment Exceeds 500,000: Three Causes Identified

South Korea is facing a significant rise in graduate unemployment, with the number of jobless individuals holding university degrees exceeding 500,000 in May. This marks the highest figure in five years, reaching levels comparable to the peak of the COVID-19 pandemic.

The concerning trend emerges despite a robust semiconductor industry and positive export performance. The nation's key export sector, semiconductors, is experiencing a boom, and overall exports have shown growth. However, these macroeconomic strengths are not translating into sufficient job opportunities for the growing number of university graduates entering the labor market.

According to national data, the number of unemployed individuals with a university degree or higher stood at 503,000 in May. This figure is a stark reminder of the employment challenges faced in 2020 (546,000) and 2021 (541,000), the years most heavily impacted by the pandemic's economic fallout. The data indicates a reversal of the slight improvements seen in subsequent years, returning the graduate unemployment rate to crisis levels.