South Korea sees fewer 'resting' youth but rising unemployment

A notable shift is occurring among South Korea's youth, with a significant decrease in those passively 'resting' and a corresponding rise in individuals pursuing education or job training. In July, the number of young people (15-29 years old) not engaged in economic activity and reporting they were 'resting' fell by nearly 69,000 from the previous year, reaching 367,000. This decline, 15.8%, far outpaces the overall decrease in the youth population.

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Students being newly included in the youth population could be an age effect, but considering the decrease in the 'resting' population, there is also the aspect that they have entered the pre-employment stage.

This trend suggests that more young people are moving away from passive idleness toward actively preparing for the job market. The number of 'discouraged job seekers', those who have sought work but given up, also decreased by about 18% during the same period. Instead, categories like 'attending regular educational institutions' and 'attending academies or institutions for employment preparation' saw substantial increases, by 65,000 and 40,000 respectively.

However, this increased preparation is not translating into better employment outcomes. The youth unemployment rate climbed to 6.8% in July, a 1.3 percentage point increase from the previous year. This marks the largest year-on-year rise in five and a half years. The number of unemployed youth also grew by 41,000 to 251,000, indicating that more young people entering the job search are struggling to find positions.

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There were civil service exams during the survey week, and an increase in youth entering the labor market due to expanded public sector hiring and an increase in new job openings.

Officials attribute the rise in job seekers to factors like public sector hiring and increased recruitment efforts. Yet, they acknowledge the evolving job market, characterized by a shift from large-scale public recruitment to more frequent, experience-focused hiring, makes it harder for young people. Some also point to the impact of artificial intelligence potentially replacing entry-level roles. The government plans to announce measures to create 200,000 jobs by 2030 to address these challenges.

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The employment environment for young people is not as favorable as it was in the past, as the hiring culture has shifted from past public recruitment to frequent hiring and a focus on experienced hires.