• South Korea's youth employment has hit its lowest since 2018, with a significant drop in new wage jobs.
• Despite adding over 254,000 jobs in Q2, the growth rate was slower than expected, and job opportunities for young people have been declining.
• Jobs for those in their 20s and younger fell by 134,000, while older age groups saw an increase in job opportunities.
• The decline in new wage jobs for young adults in South Korea reflects the ongoing effects of the COVID-19 pandemic and poses a significant challenge for the country's economic recovery.

South Korea has recently witnessed a significant drop in the number of new wage jobs for young adults, marking the lowest since 2018. This alarming trend was observed in the second quarter of the year, as per the data released by Statistics Korea.

The data indicates that the number of young adults, specifically those in their teens and 20s, who received employment in new jobs during the April-June period, plummeted by 8.6 percent from the previous year. This amounted to 1.45 million new jobs, a figure that has not been this low since the statistics agency began keeping such records in 2018.

Slow Growth and Declining Opportunities

While South Korea did add more than 254,000 wageworker jobs in the second quarter of this year, the growth rate was slower than expected. Furthermore, the number of job openings for young people has been on a steady decline for nearly two years. As of May 2024, the number of paid employee jobs stood at 20.84 million, a slight increase from 20.58 million a year earlier.

However, the country has been experiencing a slowdown in on-year employment growth since the first quarter of 2022. This was when newly added jobs for wage earners reached 752,000, following the aftermath of the COVID-19 pandemic.

Age and Sector-wise Job Distribution

The data further breaks down the employment figures by age. Jobs for those in their 20s and younger fell by 134,000, or 4.2 percent, from a year earlier to 3.06 million. This marks the seventh quarterly decrease. The number of paid job positions for those in their 40s also dropped by 56,000 to 4.44 million in the second quarter.

In stark contrast, the older age groups saw an increase in job opportunities. Specifically, 261,000 jobs were added for people in their 60s and older, bringing the total to 3.78 million. People in their 50s and 30s also saw an increase in jobs by 124,000 and 59,000, respectively, from a year before.

The sector-wise breakdown of the data reveals that the health and social welfare segment added 130,000 more paid worker jobs. The food and accommodation field saw an increase of 23,000 jobs in the second quarter. The manufacturing sector also saw a rise in hiring, with an addition of 28,000 jobs.

Historical Parallels and Current Challenges

This trend of declining job opportunities for young adults in South Korea is reminiscent of similar historical events. For instance, during the 1997 Asian financial crisis, South Korea faced a similar situation where the youth unemployment rate soared as companies cut back on hiring to cope with the economic downturn.

The current situation, however, is more complex due to the ongoing effects of the COVID-19 pandemic. The pandemic has not only disrupted the global economy but also led to significant changes in the job market. The decline in new wage jobs for young adults in South Korea is a reflection of these changes and poses a significant challenge for the country's economic recovery.