The job market in the US has received much attention in 2025, but the numbers show that matters are similarly dire across the globe. Korea’s youth employment rates are on the decline, with the numbers suggesting the region is experiencing high unemployment rates among its educated youth. South Korea’s youth job slump matches the issues we’ve seen in other Asian regions like China as well, where graduates are experiencing a dearth of opportunities after completing grueling, expensive degrees.
The economic conditions prevailing across regions have added to the problem, but there also appears to be a distinct gap in the expectations that job seekers have and the opportunities available to them. In 2026, bridging the fast-widening divide between employers and employees may just be the biggest challenge that needs addressing.
South Korea’s youth employment rates are on the decline, with many citing a lack of desirable opportunities to support their career goals. (Image: Pexels)
South Korea’s Youth Employment is on the Decline: Will Young Workers Be Able to Find Their Footing?
Data emerging from South Korea shows that the youth unemployment rate in the region went up to 5.3% in October, up from the 4.80% seen in September. Since 1982, until this year, the youth unemployment rates have stood around an average of 7.13%, reaching an all-time high of 13.40% in February 1999.
The decline of South Korea’s youth employment rates was made evident by reports suggesting that the number of young candidates with four-year college degrees who have remained unable to find work in the last 6 months reached its highest point in 13 months, crossing 35,000 workers. Of these, 19,000 were aged between 25 to 29, which marks the general age where college graduates enter the job market.
Yonhap News also reported that in October, 119,000 overall job seekers admitted to being unemployed for over 6 months, despite their attempts to find employment. These numbers suggest that not only is there a problem in terms of high unemployment rates, but it is also evident that the youth are going months without finding a stable source of income.
As Unemployment Goes Up, Many Qualified Candidates Resort to Taking a Break
There are many reasons for the rising youth unemployment rate in Korea in 2025. Some reasons stem from local cultural shifts and economic changes, but the youth in the region have also been affected by the trends we’ve witnessed in Western workplaces. While the region has also been hit by AI-based changes to the workforce, the elimination of jobs isn’t the leading cause for South Korea’s highly educated youth stuck in unemployment. The lack of desirable opportunities appears largely to blame.
Some state that the young workers are unable to find work that aligns with their interests despite extensive searching. Many of the youth have grown frustrated by the state of employment and the growing pressures invading the workplace. Data from the region’s National Data Office earlier this month showed that many able candidates have also given in to “taking a break” from employment and remaining economically inactive.
While these specific numbers were higher for older workers growing closer to retirement, the number of younger adults who were doing the same was also significant. Again, many cited a lack of desirable work opportunities for this gap in employment.
As Korea’s Youth Employment Declines, Businesses Continue to Lose Out on Talent
South Korea’s youth are stuck facing a job slump that could take a while to unravel. The region’s declining birth rate and growing older population have many senior workers extending their employment, thus limiting the availability of opportunities for workers. Japan and China have witnessed similar trends and made their own attempts at supporting their workers in both their personal and professional lives, but the improvements have been slow to come.
Unfortunately, this stagnation hurts business, as young workers who make up the future of the workforce are left without experience or training. In order to find continued success later down the line, businesses will have to make an attempt to meet the needs of young workers, Gen Z or otherwise, and focus on retention on terms that agree with them. Many of these young workers have skills and perspectives that could be honed into fitting the needs of the business perfectly, but it requires active intervention.
From making the work and employment terms more beneficial to the youth to rewiring these standard systems of operation today, it is important to revisit the state of employment with a closer lens. Workers remain unsatisfied with the opportunities available, but most are keen to work and return to productivity full-time.
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