"Over 1 Million Not Working" Record Low Employment Rate...What About Youth Jobs?

In the first quarter of this year, the number of unemployed people has once again surpassed 1 million for the first time in five years, with a particular intensification of weak employment conditions among the youth.

According to Yonhap News on April 19, citing the National Statistical Portal and employment trend data from the Ministry of Data and Statistics, the average number of unemployed people in the first quarter was 1,029,000, an increase of 49,000 compared to the same period last year. This is the first time that the number of unemployed in the first quarter has exceeded 1 million since 2021, when the impact of COVID-19 was significant.

The number of unemployed surged from 1.16 million in 2020 to 1.38 million in 2021, then decreased to 990,000 in 2022 and 918,000 in 2023. However, from 2024, it has once again turned upward, increasing for three consecutive years. The rise in unemployment has been attributed to factors such as delays in the implementation of job creation policies and an increase in job-seeking activity.

In particular, the employment situation for young people has worsened even further. In the first quarter, the number of unemployed in the 15 to 29 age group was 272,000, accounting for 26.4% of all unemployed people. The number of young unemployed increased by 10,000 compared to the previous year, marking a rise for two consecutive years.

Job seekers attending a job fair held at COEX in Gangnam-gu are checking the job posting board. Photo by The Asia Business Daily DB

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The youth unemployment rate stood at 7.4%, up 0.6 percentage points from a year earlier, reaching the highest first-quarter level since 2021. In contrast, the number of employed youth fell by 156,000 year-on-year to 3,423,000, marking a decline for 14 consecutive quarters and dropping to the lowest level since statistics began to be compiled in 1980.

Although a decrease in population has had some effect, the rate of employment decline has been even faster. During the same period, the youth population decreased by 2.0%, while the number of employed youth decreased by 4.4%. As a result, the youth employment rate fell to 43.5%, down 1.0 percentage point from the previous year, marking a decline for the second consecutive year.

Structural changes in the job market are also having an impact. Analysts say that companies’ preference for experienced workers, the expansion of rolling recruitment, and changes in industrial structure are all contributing to delays in youth entry into the workforce.

On the other hand, the employment rate among people in their 30s is on the rise. In the first quarter, the employment rate for those in their 30s was 80.7%, the highest level ever recorded for this period. This is interpreted as a sign that, as the timing of employment is delayed, employment is shifting into the 30s age group.

Meanwhile, the government plans to announce the “Youth New Deal Promotion Plan” later this month, which will include support for youth employment and expansion of work experience opportunities.

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