South Korea reports decline in inactive youth population

South Korea is seeing a seven-month decline in the number of young people (ages 15–29) categorized as ‘resting’ or economically inactive. The government suggests this may signal a recovery in the employment ladder, as more youth are moving into vocational training, schooling, or active job seeking.

Despite this trend, the broader employment landscape remains challenging. Data shows that seven out of ten major listed companies in South Korea's top 10 conglomerates saw a decrease in total employees during the first half of the year, with the exception of Samsung Electronics, SK Hynix, and POSCO. Factors such as the rise of artificial intelligence and a shift toward hiring experienced workers rather than new graduates are narrowing opportunities for young job seekers.

To combat this, the government is expanding its support, including increasing the budget for youth job initiatives to 3.3 trillion won next year. Efforts include the K-New Deal Academy and the upcoming ‘Youth Playground’ program to connect trained individuals with job opportunities. Major corporations like Samsung and Kia have also announced upcoming recruitment seasons to help address the shortage of entry-level roles.