[비즈한국] On the 8th, the government held a joint task force (TF) meeting with relevant ministries to examine current issues in the job market. This year, the number of employed persons fell by 40,000 in May as the impact of the prolonged Middle East conflict intensified, but it returned to growth in June, followed by an increase of over 100,000 for three consecutive months from July to September. Nevertheless, the government is accelerating its review of job measures because the youth employment crisis shows no signs of improvement, despite the overall recovery in the labor market.
As President Lee Jae-myung has defined employment as one of the "three key social policies," alongside housing and financial support for the working class, relevant ministries are also accelerating policy implementation. In particular, a noticeable labor mismatch—where the number of job seekers who have never entered the workforce is rising while vacant positions at companies are also increasing—has made it urgent for the government to devise effective policies.
Kwon Dae-young, First Vice Minister of Economy and Finance, presided over the job task force meeting on the 8th and stated, "We will thoroughly inspect the implementation and preparation status of major job measures, such as the existing 'Youth New Deal Promotion Plan' and 'Youth Employment Recovery Plan,'" expressing his commitment to focus on increasing youth employment. The government meeting was held in alignment with President Lee’s policy direction, which emphasizes employment.
During a cabinet meeting held at the Blue House on September 29, President Lee ordered, "Despite various external difficulties, our economy is showing strong growth. We must accelerate efforts to stabilize people's livelihoods so that the warmth of this growth can reach every corner of the citizens' lives." He added, "We will promote the three key social policies that have the greatest impact on people's lives: housing, jobs, and financial support for the working class."
President Lee's emphasis on the job issue stems from the fact that despite the favorable surface figures, the job market is facing serious internal problems. According to the National Statistical Office's KOSIS, the total number of employed persons this year fell by 40,000 year-on-year in May due to factors such as the prolonged Middle East conflict, but recovered within a month with a 63,000 increase in June. Subsequently, the number of employed persons rose by 108,000 in July and 184,000 in August compared to the same month the previous year. In September, it continued its growth trend for the third consecutive month, increasing by 113,000.
Contrary to this overall employment market atmosphere, the youth employment rate continues to deteriorate. The youth employment rate, which was 46.6% in 2022, dropped to 46.5% in 2023, 46.1% in 2024, and 45.0% in 2025. This year, the cumulative youth employment rate from January to August remained at 43.8%, down 1.4 percentage points from the same period last year. The youth employment rate in September also fell by 1.1 percentage points from the same month last year to 44.0%, marking 29 consecutive months of decline.
Given that young people are in the age group starting to look for their first jobs after finishing school, the decline in the employment rate indicates that an increasing number of young people are facing delays or difficulties in entering the labor market. In fact, during the second quarter of this year, there were 56,000 unemployed persons who had never been employed, and 48,000 of them (85.7%) were in their 20s. The number of such inexperienced unemployed individuals in their 20s has increased by 11,000 compared to the same period last year.
The problem is that while the number of young people in their 20s unable to find work is growing, the number of vacant positions at companies is also increasing. According to the Ministry of Employment and Labor, the number of job vacancies in the second quarter of this year was 154,000, an increase of 4,000 (2.8%) compared to the same period last year. This is the first time the number of vacancies has risen since the fourth quarter of 2022, three years and three months ago.
Of these vacancies, only 19,000 (12.3%) were for temporary or daily work, which is considered unstable employment, while the remaining 135,000 were for permanent positions. While nearly 50,000 young people in their 20s have no job experience despite being capable of working, over 150,000 jobs in companies remain unfilled. This indicates a persistent labor market mismatch where the wages, working conditions, regions, and job duties offered by companies do not align with what job seekers want.
To resolve this mismatch, the government is pursuing various measures, such as strengthening support for young people who take jobs at local small and medium-sized enterprises (SMEs) through the Youth Employment Leap Subsidy and the Youth Future Savings Account. The government has also announced a plan to provide training opportunities for 300,000 professionals in cutting-edge and preferred fields by 2030 and to create over 300,000 job and startup opportunities, and the effectiveness of these plans is being closely watched.