Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Number of young Koreans not seeking jobs reaches 400,000, highest since pandemic
Young jobseekers read a recruitment guide at a job fair in Yongin, Gyeonggi Province, in this November 2023 photo. Newsis
By Lee Yeon-woo
The number of young Koreans who opted out of the job market in May was recorded at about 400,000, the highest since 2020. Despite the government's measures announced last year to integrate this group into the labor market, their number increased again after nine months as the number of full-time jobs decreased.
According to a Statistics Korea survey released Sunday, 398,000 between the ages of 15 to 29 were economically inactive in May, neither searching for nor preparing to get a job.
These individuals did not have any serious illnesses or disabilities but reported they were "just taking time off" in the survey. They are also different from the unemployed, who have actively sought employment in the past four weeks but have been unable to find a job.
The figure is the second-highest for May since related statistics began being compiled in 2003, with the highest being 462,000 in May 2020.
The number of economically inactive young people has been decreasing year-on-year since last September. However, the rate of decrease started narrowing in March. It peaked at 56,000 in January, dropped to 5,000 in March, rose to 14,000 in April and eventually turned into an increase in May.
To resolve the longstanding issue, the government announced a series of measures in November. They include expanding internship programs, National Technical Skills Qualification testing stipends and counseling services.
However, experts believe that such policies have their limitations if there aren't enough quality jobs for the 15-29 age group.
"The impact of high interest rates and reduced investment following the pandemic has led to a decrease in quality jobs desired by young people," Kim Gwang-suk, head of research at the Institute for Korean Economy & Industry, said. "This situation has resulted in a decline in regular employment and a loss of job-seeking motivation among young people."
Last month, the number of full-time regular jobs plummeted by 195,000 compared to a year ago, marking the largest drop since data recording began in 2014.
This led to an increase in the number of "discouraged job seekers" within the young generation. Despite wanting and being able to work, they have given up job searching, believing they cannot find positions that meet their expectations, such as wage levels.
Their average number from January to May stood at 120,179, increased by about 11,000 compared to the same period last year.
Despite the recent recovery driven by semiconductor exports, the growth in quality jobs has been relatively minimal because the industry has a low employment impact. The growing trend of large corporations prioritizing the hiring of experienced workers is also seen as a major factor discouraging young people from entering the labor market.