South Korea's youth unemployment strategy questioned amid rising 'NEET' population

South Korea is grappling with a significant increase in young people who are neither employed nor in education or training, a group often referred to as 'NEET'. Last month, the number of these 'idle' youth reached 650,000. This rise is particularly concerning as the overall youth population in the country continues to shrink, with the 'NEET' population growing by 240,000 compared to a decade ago.

In response, the government unveiled a comprehensive investment strategy aimed at tackling the multifaceted challenges faced by young Koreans, including employment, housing, and asset accumulation. The plan involves a substantial budget increase for youth support, from 28 trillion won this year to 43 trillion won next year. The scope of support is also being broadened to include young people with no prior work experience.

However, the strategy has drawn criticism for its heavy reliance on cash incentives and subsidies, such as hiring incentives for companies. While the government highlights benefits up to 195.82 million won for individuals up to age 34, a significant portion (72%) is directed towards cash support before age 18, like child allowances. The plan to expand hiring incentives for companies, even in the Seoul metropolitan area, up to 18 million won, is seen by some as a temporary fix that disappears once the support ends.

Furthermore, the government's goal of creating 300,000 jobs by 2030, with two-thirds coming from public sector positions or support for young entrepreneurs, is also being scrutinized. Critics argue that public jobs, such as tax delinquency management, offer limited opportunities for gaining practical experience valued in the private sector. In an era of rapid AI adoption and a shift towards hiring experienced professionals, the effectiveness of these measures in re-engaging 'idle' youth remains uncertain. The article suggests a need for greater focus on training and employment in AI-resistant or AI-creating sectors, alongside labor market reforms to create more opportunities for young job seekers.