High unemployment among youths in S Korea

My friend in South Korea told me that there is a high rate of unemployment of youths. Employers are reluctant to increase employment as it is costly to downsize the workforce during economic slowdown. The trade unions are strong and impose high cost for termination of workers.

Some employers will recruit young workers as temporary employees and pay wages that are half the rate of permanent workers.

Lesson: If trade unions are too strong, employers are afraid to recruit more people. If trade unions are too weak, employers pay low wages. The soceity has to find the correct balance between what is good for business and fair wages for workers.