Value context and insight. lkm@koreatimes.co.kr
AI led to fewer jobs for young people, more jobs for older workers: BOK
Bank of Korea (BOK) headquarters in Seoul / Courtesy of BOK
By Lee Kyung-min
Jobs for younger workers in industries most exposed to artificial intelligence (AI) are disappearing, while those among their older peers are rising, a central bank report said Thursday.
Central to the finding is younger workers performing standardized, knowledge-based tasks that can be easily replaced by AI.
In contrast, their older peers’ work requires understanding context, interpersonal communication and leadership, areas where AI falls short for the time being.
Whether the recent AI-induced decline in youth employment will persist remains to be seen, since the businesses could hire more AI-savvy young workers in the years to come, as part of human capital investment reorientation.
According to the Bank of Korea (BOK), the rapid spread of AI is deepening generational divides in employment.
The finding comes amid concerns that seniority-biased technological change is exacerbated by the early phase of AI adoption in Korea, similar to one experienced in the U.S.
From July 2022 to July this year, 211,000 jobs held by Korean workers aged 15 to 29 disappeared. Most of them, or 208,000, were lost in the industries highly exposed to AI, including programming, publishing, professional services and information services.
Over the same period, the number of jobs held by people in their 50s grew by 209,000, with roughly 70 percent of the new jobs also seen in AI-exposed industries.
“The study indicates that Korea, much like the U.S., is seeing the early signs of transforming into a seniority-biased labor market,” the report said. “Younger workers’ roles are declining after AI technologies are introduced, while an increasing number of experienced older workers are aided by them.”
The number of jobs held by young workers in the industries highly exposed to AI dropped by as much as 23.8 percent.
However, the fall in youth employment was less pronounced in health care, education services and air transportation, industries in which AI is used to complement human labor rather than replace it outright.
The central bank said it remains uncertain whether the decline in youth employment would continue.
This is in part because many businesses could nurture young workers capable of utilizing AI technologies, as part of more sustainable strategies whereby employee tasks are redesigned instead of shrinking their workforce outright.
Also possible is AI-driven productivity gains leading to an increase in overall labor demand, benefiting young AI-savvy workers.
“Discussions on diverse policy measures are needed, including greater support for startups that can utilize AI in ways that help young people explore new growth opportunities," the BOK said.