One in five job-search dropouts in South Korea is in their 20s, signaling that the youth employment slump is increasingly turning into outright withdrawal from the labor market.
According to microdata from the National Data Agency on the 27th, there were 73,407 discouraged job seekers in their 20s as of March, accounting for 20.7% of the total 354,000. That was the highest share among all age groups, exceeding those in their 30s (58,653), 40s (50,704), 50s (45,760) and 60s (68,947).
The decline in employment has also been pronounced. Over the same period, the number of employed people in their 20s fell by more than 167,000 from a year earlier, while the employed population aged 15 to 29 dropped by 147,000, marking 41 consecutive months of decline. The employment rate continues to fall while the unemployment rate rises, pointing to a broad deterioration in conditions for young people entering the labor market. As failed job searches pile up, more young people are giving up the search altogether, deepening dropouts at the entry point.
"They only want experienced hires"… Youth squeezed out by shifting recruitment practices
Changes in the industrial structure and in how companies hire are also cited as factors behind the youth employment slump. Employment has continued to decline in sectors with high youth shares such as accommodation and food services, manufacturing, and information and communications, while companies are increasingly turning to rolling recruitment and experienced hires. With the threshold for entry-level hiring rising, young people preparing to enter the workforce face ever-higher barriers.
The spread of artificial intelligence is also weighing on demand for simple, repetitive tasks. As positions traditionally filled by new hires shrink, opportunities for young people to enter the labor market are structurally diminishing. Amid these changes, the number of young people classified as "resting" has risen to around 400,000, while the number preparing for employment has declined — a stark contrast.
"Give up → shrink back → give up again"… Fears grow of entrenched vicious cycle
Experts warn that repeated withdrawal from job searches could make labor market exit a structural phenomenon. As job-search failures accumulate, psychological discouragement deepens, feeding back into further withdrawal in a vicious cycle. Intensifying competition combined with shifts in the hiring landscape is also gradually eroding young people's will to find work.
The government views youth employment as a structural challenge and is preparing countermeasures. Its approach centers on strengthening job skills and expanding work experience opportunities to broaden entry into the labor market. But short-term support measures alone have limits, critics say. Because the problem entwines industrial structure, education and hiring practices, there is growing consensus that without fundamental reform, the flow of young people out of the labor market will be difficult to reverse.
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