South Korea’s long-term youth unemployment climbed to its highest level since the aftermath of the global financial crisis, government data released on July 23, 2026, showed, highlighting a deteriorating labor market as companies cut back on entry-level hiring and more young people turned to civil-service examinations instead of private-sector jobs.
The National Data Agency said 48.6% of unemployed graduates ages 15 to 29 had remained without work for more than one year as of May, up from 46.6% a year earlier. The figure marked the highest level since 2009, when the global financial crisis pushed the ratio to 51.7%.
Officials attributed the deterioration to weaker hiring conditions across the economy, compounded by uncertainty stemming from the conflict in the Middle East earlier this year.
The survey found that the number of graduates ages 15 to 29 fell to 4.0 million in May, down 171,000 from a year earlier. Of those, 2.8 million were employed, a decline of 202,000, while the number of unemployed graduates rose by 31,000 to 1.2 million.
The duration of unemployment continued to lengthen. Nearly one in five unemployed graduates, or 19.4%, had remained jobless for more than three years, up from 18.9% a year earlier and the highest level since comparable records began in 2007.
Kim Rak-hyun, head of employment statistics at the National Data Agency, said structural changes in higher education have contributed to longer job searches.
“The share of four-year university graduates has increased over time, naturally extending the time required to complete school,” Mr. Kim said. “More students are also taking leaves of absence to prepare for employment or professional qualification exams.”
Among unemployed graduates, 39.3% said they were preparing for vocational training or employment examinations, although that share fell 1.2 percentage points from a year earlier. Meanwhile, the proportion reporting they were “simply spending time” edged up to 25.3%, while those preparing for further education increased to 12.5%.
Students also spent longer completing their degrees. The average time to graduate rose to four years and 5.7 months, up 1.3 months from a year earlier and the longest since records began in 2007. The share of students who had taken at least one leave of absence climbed to 48.9%.
The proportion of graduates who had found at least one job after leaving school fell to 84.8%, down 1.6 percentage points from a year earlier and the lowest level since the survey began in 2004.
An agency official said labor-market conditions in May were particularly weak, reflecting uncertainty during the conflict in the Middle East.
Among economically inactive young people, about 600,000 spent the previous week preparing for employment examinations, an increase of 15,000 from a year earlier. They accounted for 14.5% of the economically inactive population, unchanged from the previous year.
Preparation for private-sector jobs remained the largest category at 34.0%, although the share fell 2.0 percentage points, ending a four-year increase. By contrast, preparation for the general civil-service examination rose to 22.1%, up 3.9 percentage points from a year earlier and marking the first increase in five years.
Mr. Kim said improved compensation for lower-ranking civil servants, combined with employers’ growing preference for experienced workers and year-round recruiting, has made it increasingly difficult for young people to secure entry-level positions.
For graduates who obtained wage-paying jobs, the average time between graduation and their first job was 11.2 months, slightly shorter than a year earlier. Average tenure in a first job increased to one year and 6.8 months.
Monthly pay at first jobs most commonly ranged from about $1,450 to $2,180, accounting for 42.1% of respondents. Another 23.3% earned about $1,090 to $1,450 a month, while 11.8% earned roughly $360 to $730. The share earning at least about $1,450 increased from the previous year.
Among those who left their first job, dissatisfaction with pay, working hours and other employment conditions was the most frequently cited reason, accounting for 44.4% of responses. Temporary or seasonal work ending and contract expirations accounted for 18.0%, while health, childcare, marriage and other personal or family reasons made up 14.5%.
