|Economic Pitfalls of Over-Educated Workforce|
|by Tom McGregor||Tue, Jun 5, 2012, 11:12 PM|
Complaints have been spreading that the world has become over-educated and causing a major glut in global economies. The South Korean media is beginning to notice the negative effects of over-educated citizens.
The Korea Herald reports that, “about 42 percent of (South Korean) college graduates, whose number has exceeded 500,000 annually in recent years, are thought to be jobless or overqualified for their jobs, according to the report published by the Samsung Economic Research Institute last week.”
In reality, if the graduates without jobs or in positions below the level of their education had decided to work as soon as they graduated from high school, it could have helped spark the economy, the reports stated.
According to the Korea Herald, “with a college diploma seen as a ticket to higher income and upward social mobility in the past, the proportion of high school graduates entering university jumped from 21.4 percent in 1977 to 83.8 percent in 2008. The ratio which declined slightly to 72.5 percent last year, remains the world’s highest level, compared with the 2008 figures for Germany with 36 percent, Japan with 48 percent and the U.S. at 64 percent.”
The overeducated workforce is hindering economic vitality by disrupting the labor market and causing a surge of labor costs.
To read the entire article from the Korea Herald, link here:
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