South Korea's Youth Employment Rate Drops for First Time in Five Years

The employment rate for people in their 20s stood at 60.2 percent last year, down 0.8 percentage point from a year earlier, according to data released by the Ministry of Data and Statistics. It was the first on-year decline since 2020, when hiring slumped amid the COVID-19 pandemic, reports Yonhap news agency.

The number of employed people in their 20s totalled 3.44 million last year, down 170,000 from a year earlier. The decline has continued for three straight years and has been accelerating, widening from a drop of 82,000 in 2023 to 124,000 in 2024.

The population decline has been cited as a key factor as the number of people in this age group has fallen for five consecutive years since 2021.

But employment in the age bracket declined at a steeper pace than the population decrease, suggesting broader weakness in the labor market.

"In the past, many people found jobs in their 20s, but there is now a growing tendency for people to wait until their 30s in search of better opportunities," said Yang Jun-seok, a professor of economics at the Catholic University of Korea.

Separate data by the ministry showed that jobs at large conglomerates totaled 4.43 million in 2024, up 17,000 from a year earlier.

But the share of jobs being held by the same workers rose 0.8 percentage point to 84.4 per cent, pointing to limited job mobility.

Meanwhile, President Lee Jae Myung said that increasing polarisation in the country's economic growth is disproportionately affecting the youth, threatening the future of the nation.

Lee made the remark during an economic growth strategy meeting at Cheong Wa Dae, saying the country's K-shaped economy -- an uneven recovery where parts of the economy grow fast while others decline -- is presenting a "grave challenge."

"Judging from the surface and indices, our economy will definitely improve from last year, but the majority of the people will most likely not feel the change," he said.

"Above all the shadow of our K-shaped growth is concentrated on our young generations who carry our future," he continued. "This goes beyond a youth issue and threatens the future growth engines of South Korea's economy."

Lee said more than 400,000 young people have been pushed out of the labor market with no one taking responsibility for the lack of entry-level jobs.

- IANS