Employment Rate of College Graduates in 2020 at 37.1% Due to COVID-19... Lowest in 10 Years

KCCI Report on "Employment Characteristics and Implications of New University Graduates"
2020 University Graduate Non-Economic Activity Rate Hits 10-Year High
"Negative Signals in the Quality Aspect of Employment Detected"

[Asia Economy Reporter Yoo Hyun-seok] It has been revealed that the employment rate of university graduates in 2020 hit its lowest point due to the impact of COVID-19. As the lingering effects (scarring effects) left by COVID-19 may continue, there are calls for policies that can attract idle university graduates into the labor market through active regulatory improvements.

According to the report "Employment Characteristics and Implications of New University Graduates" released by the Korea Employers Federation on the 14th, the average number of new university graduates over the past 10 years (2013?2022) was about 298,000. However, the number of graduates in 2020 and 2021, when the economy was shocked by COVID-19, dropped sharply to 243,000 and 241,000 respectively, which is about 80% of the 10-year average.

COVID-19 also affected the employment market. The employment rate of new university graduates in 2020, when COVID-19 became widespread, was 37.1%, the lowest figure from 2013 to last year. The employment rate of new graduates last year was 46.7%, up 9.6 percentage points from 2020. However, the Korea Employers Federation analyzed this as a base effect due to the sharp decline in 2020.

In addition, the Korea Employers Federation explained that since 2020, when COVID-19 began, the proportion of regular workers among newly employed university graduates has decreased while the proportion of temporary workers has increased, signaling negative trends in the quality of employment. The share of regular workers among new graduates in 2020 was 59.7%, down 10.1 percentage points from 69.8% in 2019. Meanwhile, temporary workers increased by 11 percentage points from 23.6% to 34.6%.

In particular, the number of idle workers is also increasing. The non-economic activity rate of new university graduates in 2020 was 41.4%, the highest in the past 10 years. The Korea Employers Federation estimated that the continuous increase in the non-economic active population among new graduates since 2019 is closely related to the labor force withdrawal phenomenon among youth, including NEETs (Not in Education, Employment, or Training).

The Korea Employers Federation stated, "University graduates in 2020, when COVID-19 became widespread, experienced a significant employment shock compared to graduates of other years, and there is a high risk that the aftereffects will continue for a considerable period as scarring effects. Along with this, the increase in the non-economic active population among university graduates is raising concerns about labor force idleness."

To improve this, the Korea Employers Federation emphasized the need to revitalize the economy through regulatory reform and attract idle university graduates into the labor market by expanding vocational training programs. The Federation said, "To recover employment for new university graduates, bold and innovative regulatory reforms are needed to create a business-friendly environment and stimulate the economy. It is also necessary to reform labor laws and systems, such as improving fixed-term and dispatch systems, to facilitate smooth labor mobility and prevent the deterioration of employment conditions due to COVID-19 from turning into structural problems like scarring effects." They added, "It is also necessary to strengthen government financial support to further expand various education and training programs that young people need, such as job competency enhancement and work experience."

This content was produced with the assistance of AI translation services.