Many companies in Korea are facing a talent shortage, and the effective job vacancy rate, which had been on a downward trend in the wake of the COVID-19 pandemic, is continuing an upward trend in 2023. Candidate shortage is becoming fiercer in most industries, especially in technology and digital industries.

Inflationary pressure, the rising cost of living and the unrelenting climb in the US dollar’s value developing against a backdrop of slow wage growth resulted in increased demands for changing jobs and higher salaries. As a result, competition for talent is intensifying with better ‘pay’ and ‘benefits’ in fields and roles where there is high demand for talent.

To meet the changing demands in the labour market, professionals need to focus on their own reskilling. Companies will also need to support their employees in reskilling to retain talent in the face of demands for higher salaries and talent shortage.

In addition, companies will need to adjust their recruiting strategy to retain Gen Z talents who are more likely to change jobs looking for opportunities where they can find a purpose in their work and build upon their work experience rather than for a higher salary alone.