AI Hits Youth Jobs, Eliminates High-Paying Positions First

Warnings have emerged that artificial intelligence adoption is not only reducing youth employment but also widening wage gaps among young workers. With AI-adopting companies employing less than 20% of the total workforce, concerns are growing that youth wage polarization will intensify as AI adoption spreads further.

According to an AI employment analysis published in the February issue of Labor Review by Chang Ji-yeon, senior research fellow at the Korea Labor Institute, the impact of AI adoption on youth employment varied by occupation.

Using November 2022—when ChatGPT was launched—as a baseline of 100, the analysis found that occupations with high AI exposure fell to 85 by the end of 2024. This represents a 15% decline in jobs, meaning one in seven positions disappeared. In contrast, occupations with low AI exposure rose to 105, indicating job growth.

High-exposure occupations generally offered higher wages, while low-exposure occupations paid less. High-exposure jobs were predominantly professional positions such as systems operations specialists and software developers. Low-exposure jobs included relatively lower-paying face-to-face services, caregiving, and education. This explains concerns about growing employment polarization, where high-wage jobs shrink while only low-wage positions increase.

Wage gaps across the overall job market have also reached serious levels. According to recent wage analysis released by the National Data Center, large corporations paid an average monthly salary of 6.13 million won—double that of small and medium enterprises at 3.07 million won. This gap had narrowed since reaching 2.12 times in 2021 but widened again after three years.

Concerns are amplified by the fact that occupation-based wage polarization driven by AI adoption is just beginning. Workers at AI-adopting companies represent only about 18% of the total workforce. If the remaining 82% of companies fully adopt AI, the impact on employment reduction and wage gaps could multiply more than fourfold by simple calculation.

The analysis also confirmed that AI-adopting companies are not actively hiring young workers. AI appears to be transitioning from a "supplementary tool" supporting existing staff to a "replacement tool" that eliminates the need for new hires.

"Young people are experiencing the greatest employment shock from AI technology proliferation," Chang said. "Policies should be considered that promote augmentation approaches—where AI complements human capabilities—rather than automation approaches where AI replaces humans."