South Korea to bolster youth jobs as employment rate falls for 25th month

South Korea's youth employment rate has continued its downward trend for 25 months, leading the government to announce plans for additional job support measures, including incentives for hiring young people and expanded public sector recruitment. This comes after a previous youth employment plan, introduced just two months ago, was criticized for focusing too much on public sector experience and corporate training rather than actual job creation.

The latest figures show the youth employment rate (for ages 15-29) stood at 43.8% last month, a 2.4 percentage point drop from the previous year, marking the 25th consecutive month of decline. The government aims to strengthen job-seeking capabilities through education in advanced fields like artificial intelligence (AI) and to discover further initiatives to encourage new hires among young people.

Previously, the Ministry of Economy and Finance had indicated plans to improve its subsidy programs by offering preferential treatment and additional support to businesses creating jobs for youth and in local areas. A government official stated that comprehensive job measures would be developed, linking financial support to youth employment and including expanded recruitment by public institutions. The job task force also plans to release sector-specific response strategies for industries experiencing employment downturns, such as manufacturing, construction, and agriculture.

Deputy Prime Minister and Minister of Economy and Finance, Choo Kyung-ho, highlighted employment in advanced fields like "Agentic AI" – a type of AI that can set goals, plan, use tools, and execute tasks autonomously. He visited an innovation academy in Seoul, emphasizing the need to actively develop training programs in this area. "We will significantly expand training, aiming to cultivate 1,000 individuals in the second half of the year," Choo said. "We will utilize all available policy tools to support young people's entry into the workforce by matching them with all sectors that have problem-solving needs, including small and medium-sized enterprises, venture and startup companies, public institutions, and the social solidarity economy."

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We will significantly expand training, aiming to cultivate 1,000 individuals in the second half of the year. We will utilize all available policy tools to support young people's entry into the workforce by matching them with all sectors that have problem-solving needs, including small and medium-sized enterprises, venture and startup companies, public institutions, and the social solidarity economy.