"Already Struggling" Soaring House Prices Leave 2030s Burdened with Debt... Bending Under Pressure [Heo Midam's Youth Report]

Depressed MZ Generation: Income 1.4 Times Higher and Debt 4.3 Times Greater Than Previous Youth
"Future Bleak"... Mental Health Red Flags for 20s and 30s Generations

A citizen is looking at downtown apartments from Namsan, Seoul. The photo is unrelated to specific expressions in the article. Photo by Yonhap News.

Editor's NoteHow is your youth remembered? From teenagers to college students and office workers, we bring you the joys and sorrows, worries and laughter unique to 'youth.'

[Asia Economy Reporter Heo Midam] "Life is getting tougher and tougher."

Recently, it was found that the so-called 'MZ Generation (Millennials + Generation Z)' has not seen a significant increase in income compared to young people of the same age 20 years ago, while their debt has increased much more. This appears to be influenced by severe employment difficulties and skyrocketing housing prices. Given this situation, young people feel more depressed than other generations due to uncertainties about the future.

According to the 'Status and Characteristics of the MZ Generation' report released by the Bank of Korea on the 15th, the labor income of the MZ Generation (born 1980?1995, based on married male household heads in regular employment) in 2018 was 1.4 times higher than that of the same age group in 2000.

However, compared to the X Generation (born 1965?1979) and Baby Boomers (born 1955?1964), whose labor incomes increased 1.5 times and 1.6 times respectively compared to the same age group in 2000, the increase for the MZ Generation was smaller.

On the other hand, total debt for the MZ Generation in 2018 reached 4.3 times that of the same age group in 2000, far exceeding the X Generation (2.4 times) and Baby Boomers (1.8 times). In short, while the income of the MZ Generation increased less than that of the X Generation or Baby Boomers, their debt grew rapidly.

A counter at a commercial bank in Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

Given this situation, voices expressing stress over the harshness of life are emerging, especially among young people. Kim (24), a college student, said, "These days, resting makes me anxious. I have obtained the necessary certificates for employment and achieved my target TOEIC score, but I still feel nervous," adding, "Everyone else is working hard like me, but I wonder if I can get a job. These days, jobs have decreased even more due to COVID-19, so I have no confidence."

Choi (26), an office worker in a small business marketing team, also sighed over the harsh reality. Choi said, "When I was preparing for employment, I thought, 'Once I get a job, I will have no wishes left.' But after joining the company, reality was not easy," and added, "Even after working, after paying fixed costs like monthly rent, living expenses, and phone bills, there is nothing left. How can I dream of owning a home in this situation?"

The increase in total debt among the MZ Generation seems to be influenced by soaring housing prices and employment difficulties. In particular, in 2018, 34.4% of the MZ Generation took out loans for the purpose of purchasing a home, higher than 32.1% for the X Generation and 19.6% for the Baby Boomers.

Meanwhile, with ongoing employment difficulties compounded by the COVID-19 recession, a survey also showed that the MZ Generation feels more depressed than other generations.

According to the 'COVID-19 National Mental Health Survey' published by the Ministry of Health and Welfare in May last year, the average depression score for people in their 20s and 30s was 6.7 points, significantly higher than the average of 5.7 points across all age groups. Compared to those aged 60 and above, who had the lowest average depression score, there was a difference of 2.4 points.

Given this situation, there are calls for various policies to alleviate the psychological anxiety of young people. Oh (25), an office worker, said, "I hope the country becomes a place where young people can live without worries about the future," adding, "To do that, housing prices must be controlled first. Opportunities to own a home should also be given to those without houses."

Meanwhile, Choi Young-jun, a research fellow at the Bank of Korea’s Microeconomic Institution Research Office, pointed out, "The MZ Generation is emerging as the main force in economic activities but appears to be more vulnerable compared to previous generations," adding, "This could have a negative impact on the economy in the future."

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