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South Korea’s Youth Employment Crisis: Addressing Job Seekers’ Disillusionment and Structural Challenges

General Report July 18, 2025
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  • As of July 2025, South Korea is grappling with a critical youth employment crisis, underscored by persistently high youth unemployment rates and a significant uptick in disillusioned job seekers, commonly referred to as the ‘쉬었음’ population. With research showing that 77% of economically inactive youth aged 19 to 39 are disengaged from the labor market, the stakes have never been higher. The emergence of the so-called 'Kangaroo Tribe, ' which comprises approximately 17% of economically inactive youth, highlights a concerning trend of extended withdrawal from job seeking. Factors contributing to this predicament include a pronounced mismatch between available job opportunities and the preferences of young job seekers, alongside a labor market increasingly skewed in favor of experienced candidates. Additionally, rapid advancements in AI technology have widened the skills gap, posing new challenges for youth entering the workforce. Given these dynamics, a comprehensive analysis is imperative, examining structural drivers, current trends, and innovative regional pilots like Samcheok’s initiatives, as well as policy recommendations aimed at reinvigorating youth engagement in the labor market.

  • Addressing the complexity of this crisis requires an understanding of both local and national dimensions. Local governments are innovatively tailoring support frameworks to address unique demographic challenges while seeking coordination with national initiatives. The city of Samcheok's decision to redefine youth to include individuals up to age 49 is a prime example of local adaptation aimed at expanding program outreach. Furthermore, public-private partnerships (PPPs) have emerged as pivotal in restructuring youth employment, combining resources from both sectors to enhance job readiness and market relevance for young job seekers. These factors collectively frame a narrative that underscores the urgent need for targeted interventions, ranging from customized vocational training to robust mental health support systems, all aimed at confronting the disillusionment of South Korea’s youth and fostering a pathway toward sustainable employment opportunities.

Current State of Youth Employment in South Korea

  • Record-high youth unemployment rates in 2025

  • As of July 2025, South Korea is grappling with historically high youth unemployment rates, which have reached alarming levels. Recent trends indicate that the youth unemployment rate is persistently elevated, with the current figures illustrating a significant gap between youth unemployment and the general unemployment rate. Factors contributing to this trend include the mismatch between job availability and the specific aspirations of young job seekers, as well as increased competition in the labor market favoring more experienced candidates. The long-term ramifications of these job market conditions could compound the discouragement felt by the youth, thereby exacerbating the crisis.

  • Surge in discouraged job seekers (‘쉬었음’ population)

  • A notable phenomenon in the current employment landscape is the surge in discouraged job seekers, colloquially referred to as the ‘쉬었음’ population. A recent study, published on July 8, 2025, reveals that a staggering 77% of economically inactive youth aged 19 to 39 reported having no intention to seek employment. This growing disenchantment is exacerbated by the challenges of entering a labor market that seems increasingly inaccessible to young individuals. The report highlights a critical shift in job-seeking behavior, where not only is a considerable proportion of the youth inactive, but their willingness to engage in job search activities indicates a severe crisis of motivation among this demographic.

  • Emergence of the ‘Kangaroo Tribe’ phenomenon

  • The concept of the ‘Kangaroo Tribe’ has emerged as a significant characterization of a segment of South Korea’s youth. As reported by the Korea Labor Institute in July 2025, this group comprises approximately 17% of the economically inactive youth population, illustrating a growing trend of young people remaining out of the labor force for extended periods. Many within this group live with their parents, indicating a shift in traditional social dynamics. The research indicates that there is a decrease in not just the intent to work but also the readiness to accept job offers among unmarried graduates. Compared to previous years, the willingness of this cohort to work has diminished sharply, thereby further illustrating the underlying dissatisfaction and disconnection this youth group feels toward the current employment landscape.

Structural Causes of Youth Joblessness

  • Skills gap in emerging sectors driven by AI transition

  • The ongoing transition towards AI technologies has contributed significantly to the structural aspects of youth joblessness in South Korea. As industries evolve rapidly, the demand for new skills, particularly those related to AI and digital transformation, has surged. Unfortunately, many young job seekers are entering the labor market without the requisite skills, rendering them less competitive. Reports highlight that while there is a strong push for advancements in AI and related fields, educational institutions have not been able to produce a workforce proficient enough to meet these new demands. The gap between current educational outcomes and industry needs is profound, as companies are finding it increasingly challenging to fill roles that require advanced technical skills. As a result, this skills gap not only exacerbates unemployment but also affects the overall competitiveness of the South Korean economy.

Policy and Regional Approaches to Revitalize Youth Employment

  • Samcheok’s expanded youth definition up to age 49

  • In July 2025, the city of Samcheok took a significant step to address its demographic challenges by officially expanding the definition of ‘youth’ from individuals aged 18–45 to 18–49. This modification, enacted through an amendment to the city's Basic Ordinance on Youth Support, aims to tackle the ongoing decline in the region's younger population. This initiative is expected to have an immediate impact, increasing the number of residents classified as youth by 3, 140, ultimately raising their proportion in the city's demographic from 26% to 31%. By broadening the youth age range, local authorities anticipate enhancing access to targeted employment, housing, and social engagement programs, thus improving community participation among a broader segment of the population.

  • As city officials explain, the intention behind these changes is to uphold youth rights and provide more opportunities for young individuals to engage in local initiatives. Starting next year, Samcheok plans to integrate this updated definition into various budget and program frameworks, thereby ensuring that many residents benefit from policies that specifically address their needs.

  • Local versus national support programs

  • The policy landscape for youth employment in South Korea features a complex interaction between local and national support programs. While national policies aim to create broad frameworks that address youth unemployment, local governments like Samcheok have the flexibility to tailor their initiatives more closely to the specific demographic challenges they face. This localized approach enables municipalities to implement unique strategies that reflect the needs and circumstances of their youth populations. For instance, while national programs typically focus on job creation and training incentives, localized efforts often prioritize the inclusion of various marginalized groups and the formulation of community-support networks.

  • Moreover, the coordination between local and national programs can present challenges. It is essential for national policies to be adaptable, allowing local governments to innovate and implement programs that resonate effectively with their communities. One recommendation is for the national government to establish clearer guidelines and support measures that enable localities to share successful strategies while ensuring baseline standards for all youth support initiatives.

  • Innovative public-private partnerships

  • Public-private partnerships (PPPs) have emerged as a vital mechanism for revitalizing youth employment in South Korea. As local governments strive to create job opportunities and reduce unemployment rates, collaborations between public entities and private companies offer a promising avenue for innovation and resource optimization. These partnerships are designed to mobilize the strengths of both sectors — the agility and market insight of private enterprises combined with the regulatory and supportive framework of public institutions.

  • Recent initiatives have demonstrated the effectiveness of such partnerships; for instance, joint training programs between local authorities and tech companies have yielded practical vocational training opportunities for youth, preparing them for careers in high-demand sectors. This collaborative approach not only facilitates relevance in the skill sets being taught but also ensures that businesses have a pipeline of qualified candidates ready for employment.

  • Going forward, it is crucial to enhance the scale and scope of these PPPs. This can be achieved by establishing dedicated platforms for collaboration, incentivizing businesses to participate, and fostering an environment of transparency and mutual benefit. Such strategies will likely stimulate a more robust economic recovery and improve overall youth employment rates.

Recommendations for Supporting Disillusioned Job Seekers

  • Tailored vocational and digital skills training

  • As South Korea continues to navigate its youth employment crisis, a critical recommendation is the implementation of tailored vocational and digital skills training programs. These initiatives should directly address the mismatch between young people's aspirations and the current job market demands. By collaborating with industry players, educational institutions can design curricula that reflect the evolving needs of the job market, particularly in sectors influenced by technological advancements and AI integration. Such training should be flexible, catering to diverse learning styles and backgrounds to ensure all young job seekers, especially those from the 'Kangaroo Tribe, ' can access and benefit from these opportunities.

  • Psychological counseling and peer-support networks

  • Recognizing the psychological toll of job searching on young people, it is essential to incorporate robust mental health support systems, including psychological counseling and peer-support networks. These initiatives would provide critical emotional support during challenging times, helping job seekers to cope with disappointment and stress. Establishing community-based programs where youths can connect with trained professionals as well as with peers going through similar experiences can foster resilience, enhance problem-solving skills, and improve overall mental well-being. Such support can enable young job seekers to perceive setbacks as opportunities for growth rather than personal failures.

  • Continuous monitoring and data-driven policy adjustments

  • In order to effectively address the evolving challenges faced by disillusioned job seekers, it is imperative to establish a framework for continuous monitoring of the labor market and the effectiveness of interventions. Data-driven policy adjustments should be made based on real-time labor market analysis to ensure that training programs and support systems remain relevant. Building a real-time youth labor observatory can provide valuable insights into employment trends, helping policymakers to make informed decisions that better align with the needs of the youth. This approach ensures that strategies evolve in response to changing dynamics, ultimately benefiting job seekers.

  • Incentives for firms to create entry-level positions

  • Creating incentives for companies to establish entry-level positions is an essential strategic focus. These could include tax breaks, subsidies, or reduced regulatory burdens for firms that consciously hire youth or create training programs. Moreover, fostering partnerships between government and private sectors can facilitate pathways for job seekers to transition into the workforce. Encouraging businesses to develop internship and apprenticeship programs tailored for young job seekers not only eases their entry into the job market but also allows them to gain valuable experience and skills that align with employer expectations.

Wrap Up

  • Synthesizing the findings around South Korea's youth employment challenges reveals that the crisis is deeply entrenched and necessitates multifaceted solutions that extend beyond mere economic recovery strategies. The current landscape necessitates urgent and targeted interventions; these include realigning training programs to meet shifting industry needs, amplifying psychological support to mitigate feelings of hopelessness among young job seekers, and advocating initiatives modeled after successful local adaptations such as Samcheok’s youth redefinition. It is paramount that both central and local governments, alongside educational institutions and private industry, collaborate to implement a cohesive strategy that actively mobilizes resources to combat youth unemployment.

  • Looking ahead, the establishment of a real-time youth labor observatory is essential to track labor market dynamics and measure the effectiveness of employment interventions. Furthermore, incentivizing businesses to prioritize youth hiring and embedding resilience training in career paths will empower South Korea’s young workforce to navigate an increasingly AI-driven economy with confidence and opportunity. The future of South Korea’s labor landscape hinges on a renewed commitment to fostering an environment where young job seekers are supported, developed, and integrated into the economy, ensuring that their potential is fully recognized and utilized. The trajectory for positive change lies in the collective action of stakeholders committed to shaping a more inclusive and adaptive labor market.

Glossary

  • Youth Unemployment: The condition where individuals aged 15 to 24 are actively seeking work but are unable to find employment. South Korea is currently experiencing high youth unemployment rates, which are notably higher than the overall unemployment rate, indicating structural challenges in integrating this demographic into the labor market.
  • 쉬었음 (Swi-eoss-eum): This Korean term translates to 'disengaged' or 'discouraged' job seekers who have ceased actively looking for employment. As of July 2025, a reported 77% of economically inactive individuals aged 19 to 39 fall into this category, reflecting a deep-seated disillusionment with the job market.
  • Kangaroo Tribe: A colloquial term referring to a subset of South Korean youth (approximately 17% of the economically inactive population) who remain out of the labor force for extended periods. This group illustrates a troubling trend of young people living with their parents and exhibiting decreased job-seeking motivation.
  • Job Mismatch: The discrepancy between available job opportunities and the skills, qualifications, or aspirations of job seekers. In South Korea, a significant job mismatch contributes to the ongoing youth employment crisis, with many young individuals finding that job offerings do not align with their career goals.
  • AI Transition: The shift towards automation and artificial intelligence in industries, which alters the types of skills required in the workforce. This transition is widening the skills gap for young job seekers in South Korea, as many lack the advanced skills necessary to compete in an increasingly digital economy.
  • Samcheok: A city in South Korea that has taken proactive measures to address its youth employment challenges, including redefining its demographic criteria for youth from ages 18–45 to 18–49. This change aims to broaden access to support services for a larger segment of the population as of July 2025.
  • Employment Rate: The percentage of the working-age population that is employed. Tracking this rate is crucial for understanding labor market dynamics, including the challenges facing youth employment amid fluctuating economic conditions in South Korea.
  • Public-Private Partnerships (PPPs): Collaborative projects between government entities and private companies designed to address social challenges, including youth unemployment. These partnerships leverage resources and expertise from both sectors to enhance job training and create employment opportunities for young people.
  • Tailored Vocational Training: Customized training programs designed to equip job seekers, particularly youth, with the specific skills demanded by the job market. This approach aims to help address the skills gap and mismatch that contribute to high youth unemployment rates.
  • Psychological Counseling: Supportive services aimed at helping individuals cope with mental health challenges, particularly during stressful periods like job seeking. Implementing such services is crucial for sustaining motivation and emotional wellbeing among youth facing employment difficulties.
  • Continuous Monitoring: The process of regularly assessing labor market conditions and the effectiveness of policy interventions. Establishing frameworks for continuous monitoring will help policymakers in South Korea to adapt strategies promptly to the changing dynamics of youth employment.

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