🚨 Youth Employment Rate: Employment Indicators and Job Strategies for Young People in a Tough Job Market

Today Korean Social News | 2025.04.12

📌 Youth Employment Rate at 4-Year Low... Job Market Remains Cold for Young People Despite Overall Job Growth

💬 In March, the total number of employed people was 28,589,000, an increase of 193,000 compared to the same month last year, with the employment rate hitting a record high of 62.5%. However, the employment rate for youth (aged 15-29) was 44.5%, the lowest since 2021. The youth unemployment rate rose to 7.5%, up 1.0 percentage points from the previous year, and the "resting" population (those not actively seeking work) increased by 16.3% to 417,000. This suggests that the employment situation young people actually experience is worsening.

Summary

• The youth employment rate is a key indicator showing the employment situation of young people (aged 15-29), and it recently hit a 4-year low.
• Key causes of youth employment problems include job market instability, job mismatches, and economic recession.
• Strengthening job skills and utilizing government support programs can help young people overcome employment difficulties.

1️⃣ Definition

Youth employment rate refers to the percentage of employed individuals among the youth population (aged 15-29). Simply put, it shows how many out of 100 young people have jobs.

The youth employment rate is an important economic indicator showing the labor market situation for young people, and it also serves as a measure of social vitality and future growth potential.

💡 Why is it important?

• The youth employment rate shows the economic activity status of young people who will be the backbone of the future economy.
• A low youth employment rate means not only delayed career development for individuals but also economic loss for society as a whole.
• Youth employment issues are connected to various social problems such as declining birth rates, reduced consumption, and deepening social inequality.

2️⃣ Current Status and Characteristics of Youth Employment

📕 Youth Employment Statistics and Trends

• Youth employment rates show different patterns from overall employment rates. According to Statistics Korea, as of March 2025, the overall employment rate recorded an all-time high of 62.5%, but the youth (aged 15-29) employment rate was 44.5%, the lowest since 2021. The youth unemployment rate was 7.5%, up 1.0 percentage points year-on-year, more than double the overall unemployment rate of 3.2%. More concerning is that the "resting" population (those who are not classified as unemployed because they are not actively job-seeking) increased by 16.3% to 417,000. This suggests that more young people are giving up on finding jobs. Looking at trends over the past five years, youth employment rates, which showed temporary recovery after COVID-19, have been declining again since 2023.

• The youth job market also faces qualitative challenges. Looking at the quality of jobs for young employees, there is a tendency toward high rates of non-regular employment and low wage levels. As of 2024, about 35% of young wage workers are in non-regular jobs, which is higher than the average across all age groups. Additionally, the average time to first employment is getting longer at 10.2 months, and job preparation costs are increasing. For college graduates especially, it takes an average of 7.8 months to find their first job after graduation, and about 40% find employment in fields unrelated to their majors, indicating serious job mismatch problems. After employment, early career workers also show high turnover rates, indicating high employment instability. Thus, young people not only have difficulty finding jobs, but the jobs they do find often have low stability and satisfaction.

📕 Causes and Impacts of Youth Employment Problems

• Youth employment problems stem from various structural causes. The main causes of youth employment difficulties include the following factors. First, there is a decrease in job creation due to economic recession and low growth. Particularly after COVID-19, increased economic uncertainty has led companies to reduce new hiring. Second, job mismatches are intensifying due to changes in industrial structure and technological advancements. There is a gap between educational content and the skills required in the field. Third, the dual structure of the labor market due to preference for large corporations and public institutions is serious. Many young people concentrate on a small number of "good jobs," intensifying competition. Fourth, excessive emphasis on education and academic inflation is leading to downward employment for highly educated individuals. Fifth, there is a gap between the working conditions expected by young people and those offered by companies. Young people's demands for work-life balance and growth potential have increased.

• Youth employment problems have various impacts on individuals and society. Youth unemployment goes beyond economic issues to bring about various social ripple effects. First, individuals experience career interruptions and income reductions, resulting in economic losses throughout their lives. Delayed employment can cause a "scarring effect" that negatively impacts lifetime income. Second, it exacerbates the low birth rate problem due to delayed marriage and childbirth. Economic instability is a major factor in postponing family formation. Third, it leads to reduced consumption and domestic economic recession. Income reduction among young people negatively impacts major consumer goods markets such as housing and automobiles. Fourth, inequality between generations and social conflicts may intensify. The gap is widening between the older generation with stable jobs and the younger generation with unstable employment. Fifth, it weakens national competitiveness and growth potential. If the capabilities of young people are not properly utilized, it becomes an obstacle to long-term national development.

Main Characteristics and Problems of Youth Employment

1. High unemployment rate: Youth unemployment rate more than double the overall unemployment rate
2. Job mismatch: Mismatch between major and job, gap between capabilities and requirements
3. Employment instability: High proportion of non-regular workers and frequent job changes
4. Dual labor market structure: Gap in working conditions between large corporations/public institutions and small-to-medium companies
5. Extended job preparation period: Significant time and cost spent on building credentials and preparing for employment
6. Downward employment: Phenomenon of taking jobs below one's education level
7. Gap between perceived unemployment and statistics: Hidden unemployment not captured in official statistics, such as the "resting" population
8. Wage stagnation: Actual stagnation or decrease in starting wages for young people
9. Excessive competition: Overheated competition for a small number of "good jobs"
10. Changes due to digital transformation: Challenges in adapting to new technological environments

3️⃣ Efforts to Solve Youth Employment Problems

✅ Government Youth Employment Policies

• The government is implementing various policies to support youth employment. The government is implementing several policies to address the employment difficulties faced by young people. First, according to the Special Act on Youth Employment Promotion, public institutions and local public enterprises must hire a certain percentage of young people. This percentage is 5% as of 2025, which has the effect of expanding opportunities for new employment. Second, the Youth Tomorrow Savings Program provides asset-building opportunities for young people employed at small and medium-sized enterprises. If a young person works for 2 years and saves a certain amount monthly, the government and company provide additional support funds, allowing them to save about 16 million won. Third, the National Employment Support System provides job-seeking promotion allowances of up to 500,000 won per month for up to 6 months to young people struggling with employment, along with customized employment support services. Fourth, youth entrepreneurship support programs include various supports such as startup funding loans, startup space provision, and mentoring. Fifth, the Youth Digital Job Project supports labor costs for small and medium-sized enterprises that hire young people for IT-related jobs. These policies aim to expand employment opportunities for young people and help them form early careers.

• Regional youth employment measures are also being actively pursued. Along with central government policies, local governments are also preparing youth employment support measures tailored to regional characteristics. Seoul City provides comprehensive support including regional-based youth job creation, startup support, and housing stability through the "Youth Vitality Project." Busan City supports regional youth settlement and job connections through the "Youth Dream City" project. In particular, it focuses on cultivating customized talent linked to regional specialized industries such as shipbuilding, maritime, and finance. Gyeonggi Province alleviates economic burdens by providing quarterly support funds to 24-year-olds through the "Youth Basic Income" system. Daejeon is investing in creating a "Youth Technology Startup Hub" utilizing science and technology infrastructure. Jeollabuk-do operates a "Young Farmer Development Program" to attract young people to rural areas. In this way, each region is pursuing various youth employment measures suited to regional industries and conditions, seeking to revitalize regions and solve youth employment problems simultaneously.

✅ Strengthening Youth Employment Capabilities and Trends

• Strengthening youth employment capabilities is becoming increasingly important. The following approaches can help young people gain competitiveness in the changing employment environment. First, strengthening digital capabilities is essential. Basic understanding and ability to use digital technologies such as AI, big data, and cloud computing are required in almost all job roles. Second, it is important to develop complex problem-solving abilities and creativity. As simple repetitive tasks are being automated, creative thinking and problem-solving abilities are increasingly valued. Third, accumulating practical capabilities through internships and field experience is important. Practical experience in actual work environments is valued higher in hiring than theoretical knowledge. Fourth, networking and building personal relationships are also important capabilities. Human networks are very helpful in understanding industry trends and obtaining employment opportunities. Fifth, it is important to develop self-directed learning abilities and adaptability. In a rapidly changing job environment, the ability to continuously learn and adapt to new things is becoming increasingly important.

• It is necessary to pay attention to new trends in the recent youth job market. The youth job market is constantly changing, and recently the following trends have become prominent. First, interest is expanding from large corporations and public enterprises to startups and medium-sized companies. As more young people value growth potential and organizational culture, interest in innovative startups is increasing. Second, various forms of employment beyond regular employment, such as freelancers and contract workers, are spreading. There is an increasing trend in job flexibility and diversity. Third, job-centered recruitment is expanding. Hiring methods that emphasize practical capabilities required for the job rather than academic background or specs are increasing. Fourth, a culture that emphasizes work-life balance is strengthening. There is a clear tendency to consider work environment, growth potential, and quality of life rather than simple salary. Fifth, new work forms such as non-face-to-face recruitment and remote work are becoming established. After COVID-19, non-face-to-face recruitment processes and flexible work methods are becoming commonplace. Understanding and responding to these trends helps in establishing effective employment strategies.

4️⃣ Related Terms Explanation

🔎 Economic Activity Participation Rate

• Economic activity participation rate refers to the percentage of the working-age population actually participating in economic activities.
• Economic activity participation rate refers to the percentage of the economically active population (employed plus unemployed) among the working-age population (15 years and older). Simply put, it is the percentage of people with the willingness and ability to work. It is calculated as: Economic activity participation rate = (Economically active population ÷ Population aged 15 and over) × 100. The youth economic activity participation rate is the economic activity participation rate for only the youth population (ages 15-29), showing how actively young people are participating in the labor market. A low youth economic activity participation rate means that many young people are giving up on finding jobs or not participating in the labor market for reasons such as education. Economic activity participation rate is an important indicator for judging the health of the labor market along with the employment rate and unemployment rate, and a decline in the youth economic activity participation rate can lead to a weakening of future growth engines, making it an area that needs attention.

🔎 Perceived Unemployment Rate

• The perceived unemployment rate is an expanded unemployment rate that considers hidden unemployed people not included in the official unemployment rate.
• Perceived unemployment rate (or expanded unemployment rate) refers to the unemployment rate that considers people who are effectively unemployed but not included in the official unemployment rate. While the official unemployment rate only includes "unemployed people who have sought jobs in the past 4 weeks" in its calculation, the perceived unemployment rate additionally includes "discouraged workers" (those who want jobs but have given up job-seeking), "potential job seekers" (economically inactive people who want jobs), and "underemployed" (those working part-time but wanting full-time jobs). As of 2024, while the official youth unemployment rate is 7.5%, the youth perceived unemployment rate is about 21%, much higher. This gap shows that many young people are not counted as unemployed in official statistics, but are actually unable to find jobs or are in unstable employment. The perceived unemployment rate can be said to more accurately reflect the severity of the employment difficulties young people actually experience.

🔎 NEET (Not in Education, Employment, or Training)

• NEET refers to young people who are not participating in any activities such as education, employment, or job training.
• NEET stands for "Not in Education, Employment or Training" and refers to young people who are not receiving education, are not employed, and are not receiving job training. Generally, it refers to people aged 15-29 who are not attending school, do not have jobs, and are not receiving vocational education or training. As NEETs are outside official economic activities or educational activities, they are at high risk of being in social blind spots. The proportion of NEETs in Korea is about 15% as of 2024, higher than the OECD average. The causes of the increase in NEETs include lack of job opportunities, frustration due to excessive competition, mismatch between education and the labor market, and mental health issues. The increase in NEETs leads to career gaps and social isolation at the individual level, and loss of human resources and increased welfare burden at the social level. Therefore, customized support for NEETs and social integration policies are emerging as important tasks.

5️⃣ Frequently Asked Questions (FAQ)

Q: What is the biggest cause of youth unemployment?

A: The causes of youth unemployment are complex, but looking at the main factors: First, the fundamental cause is insufficient job creation due to slowing economic growth. With the continued low-growth trend, new job creation is not sufficient. Second, there is a job mismatch due to changes in industrial structure and technological advancement. Traditional manufacturing jobs are decreasing while digital technology-based jobs are increasing, but young people's education and capabilities are not adequately responding to these changes. Third, the dual structure of the labor market is deepening. While stable jobs at large corporations and public institutions are limited, small and medium-sized enterprises are becoming objects of avoidance for young people due to low wages and poor working conditions. Fourth, there is an expectation mismatch due to higher education levels. Young people's education levels have risen, but quality jobs meeting their expectations are limited. Fifth, the preference for experienced workers is intensifying. Companies tend to prefer immediately usable experienced workers, reducing new graduate hiring. These various factors work together to deepen the youth unemployment problem, and a comprehensive approach is needed to devise effective solutions.

Q: How can job seekers utilize government support programs?

A: There are various government support programs available for job seekers. Here's how to utilize them most effectively. First, join the government's youth employment portal, "WorkNet Youth Job Center." Here you can check various government support information at a glance and receive customized services. Second, try using the National Employment Support System. If you are a young person aged 18-34 with a median income of 120% or less, you can receive a job-seeking promotion allowance of 500,000 won per month for up to 6 months and employment support services. Third, the Youth Tomorrow Savings Program is a great help when employed at small and medium-sized enterprises. By working for 2 years and saving a certain amount monthly, you can save about 16 million won with additional government and company support funds. Fourth, apply to companies participating in the Youth Digital Job Project. This project supports labor costs for companies hiring young people for IT-related jobs, providing an opportunity to build relevant capabilities. Fifth, check local government youth support projects. Each region operates various programs such as youth allowances, housing support, and interview expense support. Sixth, visiting an Employment Welfare+ Center allows you to receive one-on-one job counseling and career guidance. With the help of professional counselors, you can establish employment strategies that suit you. These programs have detailed eligibility criteria and conditions, so it's important to carefully check the application methods and periods for programs that fit your situation. You can check the latest information on Government24, WorkNet, and local government websites.

Q: What are the core competencies young people should have in the current job market?

A: The core competencies that young people should have in the rapidly changing current job market are as follows. First, digital literacy is basic. Not only specialized IT skills such as coding and data analysis but also the ability to handle tasks using digital tools is required in almost all job roles. Second, problem-solving abilities and creative thinking are important. As simple repetitive tasks are being automated, the ability to creatively solve problems in unexpected situations is highly valued. Third, collaboration abilities and communication skills are essential. Complex projects are carried out through collaboration among various experts, so the ability to communicate effectively with people from diverse backgrounds is important. Fourth, adaptability and learning agility are necessary. In an era where the job environment is rapidly changing, the ability to quickly acquire and apply new technologies and knowledge is essential. Fifth, self-directedness and time management skills are required. With the spread of remote work and flexible work, the ability to plan and manage work independently has become more important. Sixth, practical experience and portfolio building are important. Prepare a portfolio that can show actual results through internships, project participation, side projects, etc. Seventh, networking skills and building personal relationships are helpful. Since many employment opportunities are filled through personal networks before official job postings, it's important to participate in communities and networks in your area of interest. Since these competencies are difficult to acquire in the short term, it's desirable to continuously develop them through various experiences and project participation from school days.