[비즈한국] The employment situation for those aged 15–29, the age group first entering society, has deteriorated this year. The economic participation rate for this demographic—those currently employed or actively seeking work—is showing signs of falling to a three-year low, while the proportion of unemployed individuals who have never held a job but are actively looking for one has jumped to a nine-year high.
As the job market worsens, the number of young people categorized as "resting"—those who are capable of working but are not actively searching—is also rising. While the government claims that the economy is recovering and the number of employed people is increasing, young people aged 15–29 entering the job market are facing frustration right from the start.
In a policy speech for the 2025 budget delivered by Prime Minister Han Duck-soo at the National Assembly on the 4th, President Yoon Suk-yeol pledged support for youth employment, stating, "We will also more boldly increase investment for the future of our youth." In fact, next year's budget includes a new support program for unemployed graduates that will provide special lectures on employment and certification for 60,000 individuals.
Additionally, a new three-part "Filling Job Vacancies" package will be created, featuring specialized employment support (15,000 people), job leap incentives (45,000 people), and technical training (200 people). However, the issue remains that as more young people leaving school right now are failing to find work, this support will not be implemented until next year.
Critics argue that the government has failed to grasp the severity of the employment crisis for the 15–29 age group by focusing too heavily on statistics showing an increase in the number of employed people due to economic recovery. In its "Recent Economic Trends" report, the Ministry of Economy and Finance stated that "the number of employed people in September increased by 144,000 compared to the same month last year," assessing it as an improvement over August (an increase of 123,000). It also noted that "the Korean economy is maintaining a recovery trend centered on exports and manufacturing amidst expanding price stability," and described the recovery in domestic demand as moderate.
However, the job prospects for young people aged 15–29 who have left school and are standing at the threshold of the labor market are deteriorating, contrary to the overall trend of the job market. According to Statistics Korea, the economic participation rate for the overall population is showing signs of hitting a record high this year (based on January–September data). The economic participation rate for all ages recorded 64.5% this year, surpassing last year’s record high (64.3%). This means there are more people either working or looking for work.
The economic participation rate was 63.3% in 2019, but fell to 62.5% in 2020 due to the impact of COVID-19. After a slight rise to 62.8% in 2021, it jumped to 63.9% in 2022 and exceeded the 64% range in 2023. However, the economic participation rate for the 15–29 age group shows a contrasting downward trend. The economic participation rate for those aged 15–19, which was 49.8% in 2022, fell to 49.4% in 2023 and has since slid down to 49.3% this year.
This drop in the economic participation rate is analyzed as being caused by the difficulty in finding job opportunities. There are 44,000 "unemployed persons with no work experience" currently seeking jobs this year, and 41,000 of them—or 90.5%—belong to the 15–29 age group. This proportion is the highest since the 93.8% recorded in 2015, and it is the first time since then that the figure has exceeded 90%.
The share of the 15–29 age group among inexperienced unemployed persons began to decline after hitting 86.7% in 2021, falling to 86.5% in 2022 and 85.4% in 2023, but it has surged suddenly this year. Although it is said that the number of employed people has increased, this growth is centered on those in their 50s and 60s; there is a lack of jobs for those aged 15–29 who are entering the job market for the first time.
As finding a job becomes more difficult, the number of young people who have given up on job searching entirely and are "resting" is also on the rise. This year, the number of people aged 15–29 categorized as "resting" reached 424,000, the highest since 448,000 in 2020. The "resting" population in this age group has been increasing annually since bottoming out at 390,000 in 2022.