Young Men's Economic Activity Plummets; AI Education and Startup Support Must Be Expanded

The economic participation rate of young men in South Korea has seen a sharp decline over the past two decades, a trend that demands urgent government attention. A recent report highlights that the participation rate for men aged 25-34 fell from 89.9% in 2000 to 82.3% in 2023, a drop significantly larger and faster than in other OECD countries.

Several factors contribute to this worrying trend. Firstly, the economic activity of highly educated women has surged, increasing their presence in the workforce. Secondly, a contraction in manufacturing and construction sectors has reduced labor demand for men with associate degrees or less. Furthermore, an increase in elderly workers taking up higher-skilled jobs has encroached on opportunities for younger generations. The most significant factor, however, appears to be the impact of Artificial Intelligence (AI). A substantial portion of job losses among young people in the last four years occurred in sectors highly exposed to AI, which can readily replace routine and repetitive tasks often performed by this demographic.

This situation paints a stark picture of young men being pushed to the most vulnerable positions amidst rapid demographic and technological shifts. To reverse this trend, a significant enhancement of education and training tailored to the AI era is crucial. The government must actively expand AI competency training, support tech startups, and foster a youth-friendly startup ecosystem. Additionally, given that many young people begin their careers in non-regular positions, joint efforts by businesses and the government are needed to increase their chances of transitioning to regular employment.