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![[Editorial] No work, no future](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75){kind=small}
Korea Herald
27-05-2025
- Business
- Korea Herald
[Editorial] No work, no future
Rise in NEETs illustrates deepening shortage of decent jobs for young workers It is one of South Korea's most confounding contradictions: a nation bracing for demographic collapse, yet failing to provide its young people with the jobs they need to build lives, families and futures. With the presidential election just days away, on June 3, the major candidates remain preoccupied with political brinkmanship — dredging up old scandals and lobbing accusations over peripheral controversies — rather than addressing what may be the country's most urgent crisis: the hollowing out of its labor market. The population is aging. The birth rate remains among the world's lowest. And a growing number of young Koreans, disillusioned by what they see, are opting out altogether. According to a report from the Korea Employment Information Service, 18.3 percent of Koreans aged 15 to 29 were classified as "NEET" — not in education, employment or training — as of 2022. That ranks third among 11 major member states of the Organization for Economic Cooperation and Development, far exceeding the OECD average of 12.6 percent. Even more troubling is the trend. While peer nations have succeeded in shrinking their NEET populations since 2014, South Korea's has continued to rise. This is a symptom of deeper structural malaise, signaling a breakdown in the country's ability to generate meaningful employment for its young workers. At the heart of the issue is a persistent mismatch between expectations and opportunity. South Korea produces a highly educated labor force, but the domestic market has failed to generate enough jobs meeting their skills or ambitions. Positions at top-tier conglomerates remain scarce and fiercely competitive. In their absence, many young Koreans see little point in settling for low-paying roles at small or midsize firms, or for insecure temporary jobs. Faced with that choice, nearly 60 percent of NEETs report a lack of motivation to keep searching. The message they receive from the job market is clear: There is no place for them. One consequence is a rise in those who say they are 'just resting.' These are potential workers who have been sidelined, often involuntarily. By the third quarter of last year, more than 420,000 Koreans aged 25 to 34 were classified in this category, marking a 25 percent increase from the year before, according to the Bank of Korea. The risks are long-term: Prolonged detachment from the workforce can calcify into chronic unemployment or permanent withdrawal, eroding not only individual prospects but the country's economic potential. The deeper concern is the shortage of what are perceived as 'decent jobs' — those that are stable, well-compensated and offer a path to advancement. In the pursuit of lower costs, many large firms have offshored production. At home, economic uncertainty has dampened the mood for new investment. Hiring practices, meanwhile, remain risk-averse and inflexible. Employers often prefer experienced candidates over recent graduates. Employment protections, intended to foster security, have instead discouraged the creation of new permanent roles. So far, the presidential hopefuls have failed to meaningfully confront these challenges. Their platforms gesture toward job creation, but often in vague or populist terms. Proposals for stipends or slogans offer little in the way of structural reform. Artificial intelligence is frequently invoked as a growth engine — yet seldom acknowledged as a disruptive force that, according to a joint report by the Bank of Korea and the International Monetary Fund, could make 27 percent of existing jobs obsolete. It is not enough to champion AI investment without a plan to support those it displaces. Whoever wins next week must come to terms with this reality: South Korea's long-term economic vitality depends on building a labor market that works for its youth. Creating jobs — real, desirable, future-oriented ones — cannot be an afterthought. It must be at the heart of any economic strategy. For without opportunity, there will be no incentive to marry, to raise children, or even to stay. And without its youth, South Korea will have no future.
Korea Herald
27-05-2025
- Business
- Korea Herald
Women in 30s driving S. Korea's sharpest employment growth
More South Korean women in their 30s are working today than at any point in the country's history, driven by changing views on marriage, childbirth and career, along with a labor market that is slowly adapting in response. According to the latest data from Statistics Korea, updated on May 14, the employment rate for women aged 30 to 39 jumped from 61.3 percent in 2021 to 71.3 percent in 2024. The figure represents a 10 percentage point rise in just three years, far outpacing the 2.2 percentage point increase in the overall national employment rate during the same period. Early 2025 numbers suggest the upward trend is continuing. Public sector labor researchers say much of this growth reflects a major cultural shift. More women are delaying or opting out of marriage and childbirth, and instead choosing to stay in the workforce. The Korea Employment Information Service, a government-affiliated research institute under the Ministry of Labor, noted that low marriage and fertility rates are contributing to higher employment among women, as fewer leave the labor market for caregiving roles. But it's not just about those choosing not to start families. More women are now returning to their jobs after childbirth, helped by improvements in parental leave policies and work-life balance programs. The Korean Women's Development Institute, a state-funded think tank under the Prime Minister's Office, found that negative employment effects linked to having young children are slowly easing. In 2016, having a child under six reduced a woman's likelihood of employment by 24.2 percent. By 2023, that figure had fallen to 19.4 percent. The share of women in their 30s who experience career breaks has also declined. In 2014, 37.3 percent of women in this age group had left work due to caregiving or family-related reasons. By 2024, it was down to 23.9 percent. These changes have begun to reshape the makeup of South Korea's workforce. Women in their 30s are increasingly entering high-growth industries that were once dominated by men. In the information and communications sector, the number of employed women in this age group nearly doubled from around 83,000 in 2021 to over 162,000 in 2025, according to Statistics Korea. Similar increases have been seen in scientific and technical fields, which tend to offer better employee benefits and more flexible work arrangements. Public sector and health care jobs, which recovered quickly after the pandemic, have also helped drive this trend. Government data shows the number of women in public administration and social welfare roles rose from 87,000 in 2021 to more than 144,000 by 2025. Health care jobs increased by nearly 48,000 over the same period. As a result, the old pattern known as the 'M-curve,' where women's employment dropped sharply during their 30s due to childbirth and caregiving, appears to be fading. According to the latest Statistics Korea data in April, women in their 30s had the highest employment rate of any female age group in South Korea, at 73.1 percent. Still, researchers warn that this employment surge is closely linked to South Korea's plummeting birth rate, one of the lowest in the world. KWDI researcher Jung Sung-mi cautioned that while increased female labor participation is a step forward, it is 'largely being driven by a demographic crisis, not policy success.'
Korea Herald
27-05-2025
- Business
- Korea Herald
Women in 30s driving S. Korea's sharpest employment growth
More South Korean women in their 30s are working today than at any point in the country's history, driven by changing views on marriage, childbirth and career, along with a labor market that is slowly adapting in response. According to the latest data from Statistics Korea, updated on May 14, the employment rate for women aged 30 to 39 jumped from 61.3 percent in 2021 to 71.3 percent in 2024. The figure represents a 10 percentage point rise in just three years, far outpacing the 2.2 percentage point increase in the overall national employment rate during the same period. Early 2025 numbers suggest the upward trend is continuing. Public sector labor researchers say much of this growth reflects a major cultural shift. More women are delaying or opting out of marriage and childbirth, and instead choosing to stay in the workforce. The Korea Employment Information Service, a government-affiliated research institute under the Ministry of Labor, noted that low marriage and fertility rates are contributing to higher employment among women, as fewer leave the labor market for caregiving roles. But it's not just about those choosing not to start families. More women are now returning to their jobs after childbirth, helped by improvements in parental leave policies and work-life balance programs. The Korean Women's Development Institute, a state-funded think tank under the Prime Minister's Office, found that negative employment effects linked to having young children are slowly easing. In 2016, having a child under six reduced a woman's likelihood of employment by 24.2 percent. By 2023, that figure had fallen to 19.4 percent. The share of women in their 30s who experience career breaks has also declined. In 2014, 37.3 percent of women in this age group had left work due to caregiving or family-related reasons. By 2024, it was down to 23.9 percent. These changes have begun to reshape the makeup of South Korea's workforce. Women in their 30s are increasingly entering high-growth industries that were once dominated by men. In the information and communications sector, the number of employed women in this age group nearly doubled from around 83,000 in 2021 to over 162,000 in 2025, according to Statistics Korea. Similar increases have been seen in scientific and technical fields, which tend to offer better employee benefits and more flexible work arrangements. Public sector and health care jobs, which recovered quickly after the pandemic, have also helped drive this trend. Government data shows the number of women in public administration and social welfare roles rose from 87,000 in 2021 to more than 144,000 by 2025. Health care jobs increased by nearly 48,000 over the same period. As a result, the old pattern known as the 'M-curve,' where women's employment dropped sharply during their 30s due to childbirth and caregiving, appears to be fading. According to the latest Statistics Korea data in April, women in their 30s had the highest employment rate of any female age group in South Korea, at 73.1 percent. Still, researchers warn that this employment surge is closely linked to South Korea's plummeting birth rate, one of the lowest in the world. KWDI researcher Jung Sung-mi cautioned that while increased female labor participation is a step forward, it is 'largely being driven by a demographic crisis, not policy success.'
Straits Times
26-05-2025
- Business
- Straits Times
More South Korean young adults economically ‘inactive', especially women, college grads
The most common reasons for taking a rest were a lack of desire to find a job, a focus on education and self-development, and burnout. PHOTO: REUTERS SEOUL - South Korean young adults aged 15 to 34 who remained economically 'inactive' rather than seeking employment reached 590,000 in 2024, an increase of 197,000 from 2019, according to a report released by the state-run Korea Employment Information Service on March 23. The report was based on a survey of 3,189 young people who said they took a break over the past year. These individuals, described as economically inactive, have stopped looking for work within one to three years of completing job training or receiving job-seeking benefits. The average length of their break as of December 2024 was 22.7 months. The most common reasons for taking a rest were a lack of desire to find a job (38.1 per cent), followed by a focus on education and self-development (35 per cent), burnout (27.2 per cent) and psychological issues (25 per cent). While more men than women were inactive overall, the proportion of women has steadily increased over the past decade, the data showed. Among young people aged 15 to 24, the share of women who were inactive rose from 40 per cent in 2015 to 42.3 per cent in 2024. Among those aged 25 to 34, the proportion of women increased from 35 per cent to 40.9 per cent. In terms of education, the percentage of college graduates not looking for work increased from 19.4 per cent in 2015 to 23.7 per cent in 2024 among younger people, and from 54.3 per cent to 58.8 per cent among older individuals. 'Job mismatches have become more pronounced due to a lack of decent job opportunities appropriate for the education levels of young people,' the report said. The number of people who have never tried searching for a job has significantly risen. The share of people who had sought a job right before taking a break dropped to 29.1 per cent, down from 41.8 per cent in 2015. When asked whether they could begin work if a job were offered, 99.9 per cent of respondents aged 15 to 24 said 'yes' in 2015. By 2024, however, 24 per cent of respondents aged 15 to 24 and 20.1 per cent of ages 25 to 34 said 'no.' 'The decline in the likelihood of finding work, compared to the past, suggests that periods of inactive status could persist longer,' the report said. 'The reduced willingness to work may also contribute to this trend.' As of last month, 415,000 young people aged 15 to 29 were taking a break, an increase of 15,000 from the same month last year. This marked the 12th consecutive monthly increase, the longest streak since the 26 straight months recorded from January 2019 to February 2021. THE KOREA HERALD/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
Korea Herald
09-05-2025
- Business
- Korea Herald
Nearly half of new jobs in 2013-23 concentrated in Seoul's satellite cities: study
Prominent imbalance seen between regions close to the capital and more distant ones A study by a government-affiliated think tank showed Friday that the South Korean economy added 3.31 million new jobs between 2013 and 2023, 46.8 percent of which were created in the satellite cities near Seoul that have undergone large-scale urbanization since the turn of the century. The report by the Korea Employment Information Service found that of the top 20 cities and counties across the country where jobs increased in that time span, 12 were planned cities in Gyeonggi Province, which surrounds the capital, and particularly in cities in the southern part of the region such as Suwon, Hwaseong, Yongin and Siheung. Regions outside the greater Seoul region that saw significant increases in jobs included Naju in South Jeolla Province, Wanju-gun in North Jeolla Province, and the special self-governing city of Sejong, home to the administrative capital that houses the country's largest government complex. South Korea has launched a series of planned city projects across the country, most of which were concentrated in Gyeonggi Province. Many of them double as commuter towns for Seoul, which is why a substantial part of the Seoul Metropolitan Subway system connects the surrounding cities in Gyeonggi to Seoul. Imbalance grows between the Greater Seoul area and other regions The report showed that job growth increased among both the general population and youth in the central region, specifically in the Greater Seoul region and the adjacent Chungcheong Provinces. Sejong, located some 120 kilometers from Seoul, saw the largest increase in jobs for young workers during the 10 years, at 245.6 percent, followed by Hanam city in Gyeonggi Province (113.5 percent), Gyeryong city in South Chungcheong Province (84.1 percent), and Gimpo (83.3 percent) and Hwaseong (74.9 percent), both in Gyeonggi Province. The report used data from Statistics Korea, which categorizes youth as people between 19 and 34 years of age. The five regions that saw the steepest drop in youth jobs were all in the southern regions: 70.0 percent in Sunchang-gun in North Jeolla Province, 65.8 percent in Hadong-gun of South Gyeongsang Province, 64.1 percent in Boseong-gun of South Jeolla Province, 60 percent in Hapcheon-gun of South Gyeongsang Province, and 58.9 percent in Goseong-gun of South Gyeongsang Province. Researchers noted a clear trend of an increase in young workers in the capital region, alongside significant declines in regions already suffering from shrinking populations. This includes cities in the Gyeongsang and Jeolla regions with large-scale industrial complexes. The study also showed significant wage differences between the capital region and other areas, with nine of the top 10 regions with the highest average wages being located in the Greater Seoul region. The only region in the top 10 outside the capital area was Sejong. Sejong, whose status was raised from county-level town to city in 2012, has witnessed significant growth in its population and infrastructure due to an influx of people coinciding with the construction of the government complex there. The study's lead researcher, Lee Sang-ho, said government policy should focus on improving the quality of jobs in regions farther from Seoul to appeal to younger people. This includes balancing the "soft infrastructure" -- referring to the human capital and institutions that provide certain services, such as education, health care, financial institutions and government offices -- with "hard infrastructure" such as the power grid, industrial clusters and transportation networks.
