An Influx of New College Graduates Will Add to Unemployment Woes

New university graduates will increase the unemployment rate. Graduates are ready to enter the labor market but few companies need new employees.
The government forecasted that the unemployment rate will increase from 7.3% in August and September to 8.3% in November and December. The government is making every effort to formulate countermeasures to battle joblessness but a viable, effective plan is not expected nor even possible at this point.
The Ministry of Labor (MOL) indicated that the number of recent college graduates will reach 395,000. The MOL expected 120,000 of them will successfully gain employment but the remaining 286,000 will be left jobless.
The MOL also forecasted a sharp increase in unemployment by saying that the number of unemployed will reach 1.86 million in the first quarter of 1999. The government plans to create 200,000 jobs in public works construction and through internship programs at private companies. However, the construction projects are short term temporary jobs while most companies are ignoring the internship program. The government and management agreed to hire 8,000 interns by the end of this year but only 1,835 have been hired as of now. A source at the MOL said, 'The high unemployment of college graduates will be a serious social problem. But, the government's effort cannot help confronting the current economic limitations.'