Korean Youth Employment Falls 193,000, Lowest Since 1998
Employment for workers in their 20s dropped by 193,000 this year. This marks the steepest decline since the 1998 financial crisis.
The average monthly number of employed individuals in their 20s fell to 3.279 million. This represents a decrease of 193,000 people compared to the same period last year. The decline of 5.6% is the largest recorded since the 1998 Asian financial crisis. Employment levels are now lower than during the 2009 global financial crisis and the 2020 pandemic.
The drop in employment outpaces the shrinking population of this age group. The population of people in their 20s fell by 3.5% from January to August. The employment rate for this demographic dropped by 1.3 percentage points to 59.1%. This is the first time the rate has fallen below 60% since 2021.
Population Shifts Do Not Explain Decline
Data from the National Statistical Portal confirms the severity of the slump. The 5.6% drop in employed individuals exceeds the 3.5% decline in the total population. This discrepancy indicates a structural issue in job availability rather than demographic change. The employment rate for those aged 25 to 29 also fell to 71.1%. This figure is the lowest since 2021.
AI And Sector Preferences Drive Hiring Freeze
Artificial intelligence is reducing the need for new entry-level hires. Companies are increasingly preferring experienced workers over juniors. The economic recovery has focused on sectors with low job creation, such as semiconductors. These factors prolong the cold spell in youth employment markets.
Expert Calls For Structural Labor Reforms
Professor Yang Joon-seok of Catholic University notes a delay in entering the workforce. Young workers seek stable positions at large corporations, pushing back their start dates. He urges the government to create desirable jobs through industrial restructuring. Regulatory reforms and resolving labor market rigidities are also recommended. This analysis was reported by GN markets/jobs (en-US).
