Job-Seeking Youth Generation... "Feels Like Being Trapped in a Cave"

Youth Employment Decreases by 180,000 Compared to Same Month Last Year
Corporate Hiring May Continue to Decline Through Second Half of the Year

[Asia Economy Reporter Jang Sehee] "I think I have to keep preparing for employment until I get a stable job. Since I can't see the future, it feels like being in a cave." This is the statement of Kim (28), who graduated from a university in the Seoul area and has been preparing for employment for three years. The employment shock caused by the novel coronavirus infection (COVID-19) is hitting the youth generation.

In the 'May 2020 Employment Trends' announced by Statistics Korea on the 10th, the employment shock currently experienced by young people was clearly reflected in the numbers.

The number of employed youth (aged 15-29) decreased by 183,000 compared to the same month last year. The youth employment rate recorded 42.2%, down 1.4 percentage points. This marks a decrease for three consecutive months following March (-1.9 percentage points) and April (-2.0 percentage points). The youth employment rate had increased for 23 consecutive months since June 2018 but started to decline from March when COVID-19 began in earnest. The youth employment auxiliary indicator 3 (expanded unemployment rate), which reflects the perceived unemployment rate, rose by 2.1 percentage points to 26.3%, the highest since 2015 for the same month.

Not only companies but also major jobs in public enterprises and public institutions have been blocked due to the impact of COVID-19, so the doors to employment for young people remain closed. The bigger problem is that if the COVID-19 situation prolongs, corporate investment and hiring reductions may continue into the second half of the year.

Young people who have to spend time preparing for employment without even taking their first step into society are becoming increasingly desperate. Jeon (26), who has been preparing for employment for one and a half years, said, "Since the job market is so bad, many friends are getting jobs as interns or contract workers for now," adding, "Even if the jobs are unstable, I think it's better to get a job first and then look for another one later."

Kim (28), a candidate preparing for employment in a public enterprise, said, "Due to COVID-19, the number of hires in public enterprises, which were already small, has decreased further," and added, "If things don't go well this year, I plan to prepare for private companies as well, but looking at my friends, it seems difficult to get a job in private companies too."

Ultimately, voices are emerging that the economic crisis caused by COVID-19 will further delay young people's entry into society. Professor Sung Tae-yoon of Yonsei University's Department of Economics emphasized, "The employment situation has worsened due to the economic crisis caused by COVID-19 added to the already severe labor market rigidity," and said, "Government policies need to be prepared for young people who are having difficulties entering society initially."

The employment difficulty is not only a story for young people. According to the employment trends on the day, employment decreased in all age groups except those in their 60s. While those aged 60 and over increased by 302,000, those in their 20s decreased by 134,000, 40s by 187,000, 30s by 183,000, and 50s by 140,000. Looking at the employment rates by age, the employment rate for those in their 30s fell by 1.0 percentage point to 75%. The employment rate for those in their 40s fell by 1.7 percentage points to 76.8%. Those in their 50s (74.2%) also fell by 1.7 percentage points.

Jung Dong-wook, head of the Employment Statistics Division at Statistics Korea, explained, "Except for those aged 60 and over, the number of employed people decreased in all age groups," and added, "The age group of 25-29, which used to lead employment growth, is now showing delayed social entry due to postponed interviews and hiring."

This content was produced with the assistance of AI translation services.