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'I feel sorry toward my parents': Youth job market remains a needle's eye

Koo, 28, who works on a contract basis at a large company, is growing anxious as the end of his contract approaches. Since his position does not of...

The Korea TimesHankookilbo查看原文 ↗
A jobseeker browses employment notices at a university in Seoul, Aug. 12. Yonhap
A jobseeker browses employment notices at a university in Seoul, Aug. 12. Yonhap

Youth job seekers in South Korea are facing a worsening employment gap as the economy grows but young hiring weakens. Koo, a 28-year-old contract worker, is anxiously looking for a new job before his contract ends and says he feels sorry toward his parents. Government data showed the August employment rate for people aged 15 to 29 at 44.1 percent, down for a 28th straight month.

The number of employed young people fell by 143,000 from a year earlier, extending the decline to 46 consecutive months.

Real GDP grew 0.6 percent quarter-on-quarter in the second quarter, while nominal GDP rose 26.4 percent from a year earlier, the largest increase in 47 years.

The Bank of Korea said the employment inducement coefficient fell to 7.8 in 2024 from 8.2 in 2023, indicating fewer jobs created per 1 billion won in final demand.

A Bank of Korea analysis found that 211,000 jobs for young people disappeared over the three years from July 2022 to July 2025, with 98.6 percent of the losses in industries highly exposed to AI.

Under its Youth Job Recovery Plan, the government pledged to train more than 300,000 skilled professionals by 2030 and create at least 300,000 jobs, while expecting about 90,000 jobs next year from the measures.

Published Sep 26, 2026 11:53 am KST

A jobseeker browses employment notices at a university in Seoul, Aug. 12. Yonhap

Koo, 28, who works on a contract basis at a large company, is growing anxious as the end of his contract approaches.

Since his position does not offer the possibility of becoming a regular employee, he knows he must secure a job during the second half of this year. Until now, he has applied only to companies he really wanted to work for, but he is now prepared to consider any employer, including startups.

“From what I can tell, the number of job postings this year seems to have fallen by half compared with last year,” Koo said. “I hate being compared with my cousins who have already found jobs, and I feel sorry toward my parents, so I don't want to go home for Chuseok.”

For young people preparing for employment, Chuseok is not necessarily a welcome holiday. While Korea's economy is said to have recorded its highest-ever growth rate, driven by semiconductor exports, the gateway to employment for young people has narrowed to a gap smaller than the eye of a needle, leaving them reluctant to face their families.

According to government data, the August employment rate among people aged 15 to 29 stood at 44.1 percent, marking its 28th consecutive month of decline. The number of employed young people fell by 143,000 from a year earlier, extending the downward trend to 46 consecutive months.

Ironically, economic indicators point to a boom. According to the Bank of Korea (BOK), real gross domestic product (GDP) grew 0.6 percent quarter-on-quarter in the second quarter of this year, while nominal GDP rose 26.4 percent from a year earlier, marking its largest increase in 47 years. The annual growth rate is forecast to reach 3.3 percent this year, the highest level in five years since 2021.

Overall employment is also holding up well. The number of employed people in August increased by 184,000 from the same month a year earlier, the largest gain in five months. The employment rate for people aged 15 to 64 stood at 70.4 percent, the highest August figure since statistics were first compiled in 1989.

The problem is that young people are moving in the opposite direction. One reason cited is that manufacturing sectors such as semiconductors, which are driving economic growth, do not generate many jobs.

According to the BOK's 2024 input-output tables, the employment inducement coefficient — which measures the number of direct and indirect jobs created across all industries for every 1 billion won ($730,000) in final demand — stood at 7.8, down from 8.2 in 2023.

The spread of artificial intelligence (AI) and companies' preference for experienced workers are also raising barriers to employment for young people. According to a BOK analysis, 211,000 jobs for young people disappeared over the three years from July 2022 to July 2025, with 98.6 percent of the losses occurring in industries highly exposed to AI. In the first quarter of this year, the number of newly created jobs for people aged 30 and younger stood at 2.363 million, the lowest since data collection began in 2018.

The government has acknowledged the severity of the youth employment problem and rolled out a series of measures. Under its Youth Job Recovery Plan, announced last month, it pledged to train more than 300,000 skilled professionals by 2030 and create at least 300,000 jobs through a combination of private and public sector employment and startup support.

Young people are also a key target of the government's Future Response Fund, which is financed through additional tax revenue. Those working at small and medium-sized companies in provincial areas will receive 1 million won per month for two years, while income tax reductions for workers will be expanded. The government expects the measures to generate around 90,000 jobs next year.

However, critics say most of the measures repeat existing approaches, relying on budget-funded short-term public jobs or employment subsidies for businesses. The central concern is that jobs created with public funds may not be sustainable.

Public sentiment among young people is now turning increasingly negative. President Lee Jae Myung's approval rating among people in their 20s remain in the 20 percent range.

Experts say an urgent shift in youth-centered measures is needed, moving beyond simple job-experience programs.

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.

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