South Korea youth employment declines in AI-exposed sectors

A significant shift in South Korea's youth employment landscape has been observed, with job losses increasingly concentrated in sectors highly exposed to artificial intelligence (AI). According to microdata analysis from the national economic activity survey, youth employment (ages 15–29) fell by 191,362 people in July compared to the same month last year.

More than half of this decline—51.3%—occurred within the information and communications technology (ICT) and professional, scientific, and technical services sectors. Specifically, youth employment in the ICT sector dropped by 74,517, marking the largest monthly decrease since 2014. These sectors, which include computer programming, research and development, and professional consulting, are considered high-exposure industries for AI integration.

This trend marks a departure from previous years when job losses were primarily driven by traditional face-to-face industries such as manufacturing and hospitality. While the government suggests these figures might reflect a temporary adjustment following periods of growth in these sectors, concerns regarding AI's impact on the labor market persist. A Bank of Korea report previously noted that younger populations are more likely to occupy roles with high AI exposure, suggesting that AI could act as both a crisis and an opportunity for this demographic.