Underemployed Youth in South Korea Hit 5-Year High, Signaling Precarious Job Market

South Korea is facing a growing challenge with "incomplete employment" among its youth, as the number of young individuals working fewer than 36 hours per week but seeking additional work has surged to its highest point in five years. This statistic paints a concerning picture of the current job market for young people, revealing a significant gap between the employment they have and the employment they desire.

In the first quarter of this year, the number of young people classified as "time-related underemployed"—meaning they work less than 36 hours weekly but possess the willingness and ability to work more—reached 123,000. This marks a notable increase from previous years and highlights a trend of precarious employment, where many young Koreans find themselves in temporary or part-time positions with low incomes, effectively in a state similar to job searching.

The underlying causes for this rise in underemployment are multifaceted. The article points to an increasing trend of companies prioritizing experienced hires, a sluggish performance in key sectors like manufacturing and construction, and the looming impact of artificial intelligence (AI) potentially displacing jobs. These factors collectively contribute to a challenging environment for young job seekers, making it difficult to secure stable, full-time positions.

This situation is further reflected in the youth employment index, which combines the number of unemployed and underemployed individuals relative to the economically active youth population. This index stood at 10.7% in the first quarter, the highest since the first quarter of 2021. This means that roughly one in ten young Koreans are either unemployed or are working in unstable conditions while actively seeking better employment. The data underscores a critical need for policies and initiatives aimed at creating more stable and fulfilling job opportunities for the nation's youth.