Employment among South Koreans in their 20s falls at fastest pace since 1998 crisis
Quick Look
The number of employed people in their 20s in South Korea fell by 193,000 year-on-year to 3.38 million in January-August, the steepest decline since 1998, pushing the employment rate below 60% for the first time in five years, while employment among those in their 30s rose, reflecting a trend of later labor market entry.
AI-generated summary
Why It Matters
South Korea's youth employment has been under pressure due to structural factors including prolonged education, competitive job markets, and shifting social norms around work entry. The 1998 Asian financial crisis caused a severe economic contraction that sharply reduced youth employment.
The number of employed people in their 20s fell at the fastest pace this year since the 1998 Asian financial crisis, data showed Sunday, amid a trend toward entering the labor market at a later age.
The number of employed people in their 20s averaged 3.38 million in the January-August period, down 193,000 from the same period a year earlier, according to data compiled by the Korean Statistical Information Service.
The decline was the steepest since 1998, when the figure plunged by 550,000 in the wake of the Asian financial crisis.
The employment slump was more pronounced than the decline in the age group's population.
The population of the age group fell 3.5 percent on-year to an average 5.55 million, while the number of employed dropped 5.6 percent.
As a result, their employment rate fell 1.3 percentage points to 59.1 percent, slipping below 60 percent for the first time in five years.
In contrast, employment among people in their 30s strengthened.
The population of the age group rose by 83,000 on-year to 6.94 million, while the number of employed increased by 103,000 to 5.6 million.
Their employment rate rose to 80.9 percent, extending its upward trend for the fifth consecutive year since 2022.
Analysts say the diverging trends may partly reflect a shift toward later entry into the labor market among younger people. (Yonhap)
What to Watch
AI outlook — possibilities, not facts
Youth employment rates may remain below 60% for the remainder of 2024 if current trends continue
Likely · Within months
Open Questions
- What specific policies are being considered to address youth employment challenges?
- How does the trend of later labor market entry affect long-term career earnings and pension contributions?
- Are regional disparities within South Korea influencing these employment trends?
