Gyeonggi Research Institute proposes 'Youth Employment Guarantee System,' warning of risk to social ties

The Gyeonggi Research Institute has proposed the introduction of a "Youth Employment Guarantee System" to tackle structural youth unemployment, framing it as a societal issue requiring proactive intervention rather than individual shortcomings. This proposal emerges as the proportion of young people in South Korea who are "resting" – neither employed nor actively seeking work – has nearly doubled from 6.6% in 2015 to an estimated 12.9% in 2025.

Notably, a significant majority of these "resting" young individuals have prior work experience. For those aged 25-34, the proportion who became inactive due to previous employers' closure or layoffs more than doubled to 9.1% between 2015 and 2025. Similarly, the share of those resting after completing temporary or seasonal work also nearly doubled.

The issue is further compounded by the rise in "resting" among highly educated youth, with the proportion of those with college degrees or higher increasing by about 12 percentage points since 2015. Alarmingly, the percentage of young people not even hoping to find employment has surged from 25.2% in 2015 to 46.8% in 2024.

Researchers warn that prolonged inactivity in the labor market, exacerbated by the spread of artificial intelligence and companies' preference for experienced hires, could lead to social isolation for young people, severing not just their ties to the workforce but also their social networks. The proposed Gyeonggi-style Youth Employment Guarantee System aims to address this by combining work and education for long-term unemployed youth aged 15-34 within the province. It would provide a living wage and job search support, focusing on practical experience in areas crucial for societal needs, such as AI transition, green transition, and care services. This initiative is seen as a productive investment to prevent future social costs associated with long-term unemployment and isolation.

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This will be a productive investment that goes beyond simple welfare support, guaranteeing the constitutional right to work and preventing the enormous social costs that will arise from long-term unemployment and isolation/hermitage.