Forecasting unemployment rates is crucial for economic planning and policy-making. Accurate predictions can help governments and businesses prepare for future labor market conditions and implement appropriate measures to mitigate unemployment’s negative consequences. In the case of South Korea, understanding future unemployment trends is particularly important given the country’s aging population and rapidly changing technological landscape.
The unemployment rate in South Korea has been on a gradual decline in recent years, reaching a record low of 2.9% in 2019. However, the COVID-19 pandemic has had a significant impact on the labor market, leading to a rise in unemployment. In 2020, the unemployment rate rose to 4.0%, and it is expected to remain elevated in the coming years.
