South Korea youth employment falls at fastest rate since 1998

Employment among individuals in their 20s in South Korea has declined at the fastest pace since the 1998 Asian financial crisis. According to data from the Korean Statistical Information Service (KOSIS), the number of employed people in this age group averaged 3.38 million between January and August this year, representing a decrease of 193,000 compared to the same period last year.

The decline in employment has outpaced the decrease in the 20s population. While the population of this demographic fell by 3.5 percent, the number of employed individuals dropped by 5.6 percent. Consequently, the employment rate for those in their 20s fell to 59.1 percent, dropping below the 60 percent threshold for the first time in five years. The slump was particularly severe among those aged 20–24, whose employment rate hit its lowest level since 2000 at 41.3 percent.

In contrast, the labor market for those in their 30s showed growth. The number of employed people in their 30s increased by 103,000, bringing the employment rate for that group to 80.9 percent. Analysts suggest this divergence may be due to a trend where young people are entering the labor market at a later age, though experts warn that prolonged inactivity among the youngest workers could lead to long-term economic scarring.