Two out of 10 under-30 Koreans were neither in education nor in employment or training (NEET) as of 2017, doubling the average of developed economies and causing losses tantamount to near 3 percent of the country’s gross domestic product.

According to the Korea Economic Research Institute (KERI), the ratio of the country’s young NEETs against the age group under 30 reached 21.2 percent in 2017, almost double the OECD average of 13.4 percent. The ratio that was at 2.62 percent in 2010 jumped from 2015.

The KERI estimated the young NEETs caused an economic loss of nearly $41.6 trillion in Korea as of 2017, equivalent to 2.7 percent of the country’s gross domestic product (GDP) in 2017.

The number of the young NEETs has picked up recently as the country’s job market has remained lethargic preventing many young job seekers from landing jobs and causing them to give up to look for jobs after repeated failures.

Statistics Korea in July released data showing that it took nearly 11 months on average for college graduates to find the first-time regular job as of May this year. The time spent on landing the first job has been lengthening. It took an average 10 months for young job seekers to become paid workers in 2015, 10.2 months in 2016, 10.6 months in 2017 and 10.7 months in 2018.

Those in the high-income households or with well-education parents were less likely to be NEET. The ratio of the young NEETs in low-income families stood at 37.7 percent in 2017, whereas high-income households had only 16.5 percent.

However, those with college diploma were more in the NEET group, with 30 percent graduating from four-year universities. Males showed a higher ratio of 24.4 percent, compared to females with 19.1 percent.

By Kim Yeon-joo and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]