[K-Women Talk] Countermeasures for Declining Youth Employment in the AI Era

Declining Employment Due to Replacement of Standardized Entry-Level Jobs
Need to Strengthen AI Education and Support for Youth Startups

The artificial intelligence (AI) boom is in full swing. During the Asia-Pacific Economic Cooperation (APEC) summit at the end of last month, what captured the public's attention even more than the appearances of world leaders like President Trump and President Xi Jinping was the "Kkanbu Chicken" meeting between Jensen Huang and the CEOs representing Korea's leading companies, Samsung and Hyundai. The reason this meeting drew so much attention is likely due to the expectation that Korean companies could play a significant role in securing dominance in the AI era. The record highs of the KOSPI are also being driven by the strength of AI-related industries. The emergence of AI is transforming our lives, and this change, whether we want it or not, has already become an unstoppable trend.

Among all areas, it is our jobs that are experiencing the most significant changes due to the advent of AI. Artificial intelligence is changing the way we work, eliminating some jobs while creating others. While this change was somewhat anticipated, the speed at which it is happening is astonishing. There have been many claims in the media that AI can relatively easily replace standardized and repetitive knowledge work, but recently, a statistical analysis was published that has caused quite a shock.

According to a report published by the Bank of Korea last month, industries highly exposed to AI-such as publishing, professional services, and computer programming-have seen significant employment substitution effects due to AI. As a result, job opportunities for young people at the entry level have decreased. On the other hand, in fields where tacit knowledge based on experience and social skills are required, AI has played a complementary role, leading to an increase in employment, particularly benefiting the middle-aged and older generations.

Simply put, those in positions to assign work can use AI to further increase productivity, while those whose jobs involve only performing standardized tasks may see their jobs disappear rapidly. For young people entering the labor market for the first time, these changes can have a serious impact if they are not properly prepared. In a reality where youth employment is already difficult due to a hiring culture centered on experienced workers, the additional effect of job substitution by AI could result in young people losing job opportunities altogether, which would be a truly serious problem. It is time to respond to this issue without delay.

First, it is necessary to expand educational programs to strengthen young people's ability to use AI. Even in industries highly exposed to AI, such as research and development, educational services, and air transportation, jobs can actually increase if AI is used complementarily. Therefore, it is important to develop the ability to supplement work through AI as much as possible.

Second, support for startups should be strengthened so that young people can create new markets and business models. Entrepreneurship involves many creative tasks that are still difficult for AI to automate, so the risk of AI substitution is relatively low. Moreover, as young people gain more experience using AI in the process of running a business, they can increase their work experience and enhance their employability.

Third, policies that negatively affect youth employment in the AI era should be minimized. For example, the recently discussed extension of the retirement age to 65, if applied uniformly to all workplaces, could further reduce opportunities for new youth hires, especially in large corporations and public institutions where the legal retirement age is more meaningful. Policies must be carefully designed. In the AI era, as job opportunities for young people continue to decrease, it is essential for the older generation to take the lead in making concessions for the benefit of the youth.

Kim Kyungseon, Former Vice Minister of Gender Equality and Family

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