6 out of 10 people in their 20s are negative about retirement age extension and new youth hiring

Korea Economic Research Institute, Youth Job Perception Survey Results
Youth Job Situation Expected to Worsen (62.9%), Low Possibility of Getting Desired Job (69.5%)
News Lowering Work Motivation: Real Estate Price Surge (24.7%)

[Asia Economy Reporter Kim Hyewon] Six out of ten young people in their 20s believe that the job situation will worsen, and that extending the retirement age will have a negative impact on new hiring. Additionally, 70% thought that the possibility of getting a job at their desired workplace is low.

This is the result of a survey on 'Youth Job Perception' conducted by the Korea Economic Research Institute through the polling agency Mono Research on young people in their 20s nationwide on the 12th.

Overall, 62.9% of respondents predicted that the youth job situation will deteriorate in the future. Among those in their 20s, 69.5% responded that the possibility of getting a job at their desired workplace is low, indicating a negative perception of the job market.

When other conditions are satisfactory, 40.2% of young people answered that the minimum annual salary for a good job is between 30 million and 40 million KRW. This was followed by 20.6% for 40 million to 50 million KRW, and 15.2% for 20 million to 30 million KRW. The Korea Economic Research Institute pointed out that young people consider not only a high salary but also other conditions such as working environment important for a good job, and emphasized the need to consider various incentives to boost young workers' motivation.

Among young respondents, 65.2% thought that a lifelong job is impossible. The most desired retirement age was 61 to 65 years old at 30.1%. Next was 56 to 60 years old at 26.3%, and 19.7% wanted to retire at 66 years or older.

63.9% Say Extending Retirement Age Negatively Affects Youth New Hiring

Also, 63.9% of young people responded that extending the retirement age would negatively impact new hiring of youth. Among those who think retirement age should be extended, 33.6% said labor market flexibility such as diversification of work types is necessary, the highest response rate. This was followed by introduction of wage peak system (27%), adoption of job competency-based wage system (abolishing seniority-based pay, 22%), and raising pension eligibility age (17.2%).

The most necessary job policy direction to create jobs desired by young people was labor market flexibility, accounting for 22.4%. This was followed by expanding incentives for hiring companies at 18.7%, promoting startups at 15.5%, improving regulations that hinder corporate growth at 13.6%, reforming the education system at 10.9%, attracting global companies at 9.6%, and fostering the service industry at 8.3%. Other opinions included 'lowering or freezing minimum wage,' 'restructuring small and medium enterprises,' 'eliminating gender discrimination in employment,' 'investing in diverse job sectors,' and 'dismantling privileged labor unions.'

"Real Estate Price Surge News Lowers Work Motivation, 7 out of 10 Say They Cannot Become Effort-Based Rich"

The news that lowers young people's work motivation most was the surge in real estate prices at 24.7%. This was followed by rising prices at 21.5% and tax burdens at 20.4%. Especially, young people living in Seoul showed a high response rate of 29.2% for the surge in real estate prices.

The total asset size that young people consider as wealthy was highest at 1 billion to 2 billion KRW (23.5%). This was followed by 2 billion to 5 billion KRW at 22.9%, and 10 billion to 100 billion KRW at 20.6%. However, 70.4% of young people were negative about the possibility of becoming rich through hard work.

Choo Kwangho, head of the Economic Policy Office at the Korea Economic Research Institute, said, "The negative perception of jobs among young people raises concerns about an increase in youth who give up job seeking," and emphasized, "A major policy shift is needed to create quality jobs and provide more opportunities to young people through labor market flexibility and regulatory reforms that hinder corporate growth."

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