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South Korea's "Resting Youth" Crisis Hits 22% Amid AI Shift, Weak Economy

The share of young South Koreans not working or seeking jobs has surged to 22.3%, a sharp rise from 2019. A central bank report links this to structural shifts like AI transformation in the labor market and slowing economic growth. Notably, about 450,000 young people express no desire to work at all, with university graduates increasingly represented in this group. Officials warn this trend threatens long-term labor supply and economic potential, calling for structural policy reforms.

Key Points: South Korea Youth Labor Drop: AI, Weak Growth Drive "Resting" Trend

  • 22.3% of youths 20-34 are "resting"
  • AI-driven market changes a key factor
  • 450,000 young people do not want to work at all
  • Trend poses long-term economic risk
2 min read

More young S. Koreans opt out of labour market amid AI shift, weak growth

22.3% of young South Koreans are out of the labor force, not seeking work. BOK report cites AI disruption, slow growth, and employer preferences as key causes.

"The increase in the young people simply out of the job market could reduce labor supply... undermining the country's overall economic growth potential. - Yoon Jin-young"

Seoul, Jan 20

The number of young South Koreans who are neither working nor seeking employment has surged in recent years, raising concerns about structural strains in the labor market, a central bank report showed on Tuesday.

According to a Bank of Korea (BOK) report on youth employment, the share of people aged 20 to 34 classified as "resting" rose to 22.3 per cent in 2025 from 14.6 per cent in 2019, reports Yonhap news agency.

The category refers to individuals who are not employed and are not engaged in job searches, education or training without specific reasons, such as child care or illness.

Among them, the number of young people who said they do not want to work at all climbed to around 450,000 last year, up from 287,000 in 2019.

Youths with a junior college education or less accounted for a larger share of the "resting" group, but the proportion of university graduates has been rising markedly in recent years, the BOK said.

The BOK attributed the trend to structural factors, including artificial intelligence (AI)-driven changes in the labor market, companies' growing preference for experienced workers and slowing economic growth.

The central bank countered common perceptions by noting that "resting" youths do not necessarily have high wage expectations. Their average minimum expected annual salary stands at about 31 million won (US$20.975), broadly in line with other unemployed young people.

"The increase in the young people simply out of the job market could reduce labor supply not only in the short term but also over the longer term, undermining the country's overall economic growth potential," Yoon Jin-young, a BOK official and author of the report, said.

"The issue should be addressed not only as a cyclical challenge but also as a structural one," Yoon said, calling for stronger incentives and policy measures to encourage young people to re-enter the labour market and to improve youth employment conditions through reforms.

- IANS

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Reader Comments

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Priya S
It's heartbreaking to see young people give up. But can we blame them? The pressure is immense. In our culture, we're told to study hard and get a good job, but what if those jobs don't exist or pay peanuts? Maybe they're just burnt out. 😔
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Rohit P
The report says it's not about high salary expectations. That's key. If the jobs available are low-quality, unstable, or soul-crushing, why would anyone want them? South Korea's situation is a warning for India. We need to create meaningful work, not just any work.
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Sarah B
Interesting data. The rise among university graduates is particularly concerning. It suggests the education system isn't preparing youth for the modern economy. Policy measures are needed, but they must go beyond just "incentives" and fix the root causes.
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Vikram M
With all respect to the BOK report, calling them "resting" is a bit misleading and negative. Many might be exploring gig work, content creation, or starting their own small ventures which aren't captured in traditional employment data. The definition of work is changing.
K
Karthik V
AI and preference for experienced workers is a double whammy for freshers. How is a young person supposed to get experience if no one hires them? This is a serious structural issue. Governments and companies need to invest in proper entry-level training programs.

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