■ Narrowing Job Opportunities for Young People
Job openings for young people are dwindling as quality jobs decrease. Preferred jobs in public institutions and large corporations are struggling with hiring, leading to an increase in young job seekers giving up. Following the emergency martial law declaration in December and the ongoing US-China tariff war, domestic and international uncertainties are heightening concerns over a slowdown in the job market.
According to Statistics Korea’s national statistics portal (KOSIS) on the 10th, the average monthly employment in large companies with over 300 employees was 3,146,000 last year, an increase of just 58,000 from the previous year. This was the smallest increase since 2018, which had an increase of 50,000. After recording an increase of 182,000 in 2022, employment in companies with more than 300 employees dropped by more than half to 90,000 in 2023 and decreased by 36% last year, marking three consecutive years of sharp decline. Employment in manufacturing, which is considered a quality job, decreased by 6,000 last year, following a decline of 42,000 the previous year, marking two consecutive years of decline. Job stability is high in public institutions, making them highly desirable, but employment figures are also clearly decreasing. Last year, 399 public institutions hired 19,920 regular contract employees (excluding indefinite-term contract workers and executives), down by 287 from the previous year’s 20,207, falling below 20,000 for the first time. Among these new regular contract employees, young people accounted for 16,429 or 82.5% of the total, the lowest percentage since 2020 (74.8%).
Despite the recent robust export trend, the decrease in employment among large companies and manufacturing is related to the growth being concentrated in the semiconductor industry, which has a relatively lower employment creation effect. Preference for hiring experienced workers over new ones is also cited as a reason. The tightening of public institution hiring is attributed to a large-scale tax revenue shortfall and the maintenance of a tight fiscal stance. As quality jobs become scarce, the withdrawal from the job market is accelerating among young people who are categorized as “resting.” These young people, who report “just resting” despite having no major illnesses or disabilities, are classified as non-economically active rather than employed or unemployed. Last year, the number of “resting” young people increased by 21,000 from the previous year to 421,000, the second-highest number since statistics began in 2003, excluding the year the COVID-19 pandemic began in 2020 (448,000). Young people’s motivation to find jobs is severely decreased, and even as the population of young people declines, the number of “resting” young people is increasing. While the government has set its target for employment growth at the lowest level since 2020 (120,000 people), the increasing domestic and international uncertainties suggest a bleak outlook for youth employment this year as well.