The government is pushing a "Youth New Deal" policy to open pathways for unemployed young people entering society. At a "Public-Private Joint Youth New Deal Briefing" on the 29th, the government announced a youth employment support program centered on establishing a "K-New Deal Academy," in which large corporations directly design and operate vocational training programs, along with providing hands-on experience opportunities in the public and private sectors. With job opportunities shrinking due to the spread of artificial intelligence (AI) and companies' preference for experienced hires, structural conditions for young job seekers have worsened, effectively blocking the "employment ladder" for young people without work experience to enter quality jobs. As of the first quarter of this year, the combined number of unemployed, job seekers preparing for employment, and those classified as "resting" among people in their 20s and 30s reached 1.71 million. The government expects that providing young people with opportunities for skill development and career building, along with strengthening support measures to promote hiring, will pave the way for about 100,000 young people to enter the workforce.
Youth issues are a structural problem that must be addressed at the national and societal level, not by individuals. The intent of having the state take the lead and businesses cooperate in designing the starting line for young people to step into the workplace is commendable. However, it is questionable whether the youth employment problem can be solved through superficial measures that fail to address the root causes discouraging companies from hiring. Korean companies find it difficult to dismiss employees once hired, and the 52-hour workweek along with rigid wage structures make it hard to deploy the workforce flexibly. It is only natural that companies trapped by rigid labor regulations are reluctant to make new hires that will become a long-term cost burden.
Despite this, the ruling party, government, and labor groups are accelerating the push for "extending the retirement age to 65," which would further worsen labor market rigidity. At a meeting between the Democratic Party of Korea's Special Committee on Retirement Age Extension and the Korean Confederation of Trade Unions that day, the ruling party reportedly revealed plans to push for the retirement age extension in the first half of this year, in line with labor's demands.
A uniform extension of the retirement age raises serious concerns that it will increase companies' labor cost burdens and further dampen youth hiring. No matter how loudly the government proclaims the "Youth New Deal" and rolls out support measures, insisting on rigid labor policies that tie the hands of companies — the actual hiring entities — will only push the creation of quality jobs for young people further out of reach. If the ruling party and government are truly sincere about resolving youth issues, they should hasten reforms to make the labor market more flexible and dismantle its dual structure, rather than relying on flashy slogans or one-off support measures.
