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Addressing South Korea’s Youth Employment Crisis: Policies to Combat the ‘Kangaroo Tribe’ and Empower Job Seekers

General Report July 12, 2025
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  • As of July 12, 2025, South Korea finds itself grappling with a significant structural youth employment crisis characterized by a troubling increase in the unemployment rate and a surge in the phenomenon known as the 'Kangaroo Tribe.' This term describes a growing demographic of economically inactive youth who have disengaged entirely from the job market. A comprehensive analysis reveals that the youth unemployment rate, which stood at approximately 9% in 2024, is not merely a statistical anomaly but instead unveils deeper systemic challenges. The root causes range from severe job-skills mismatches to significant psychological barriers, compounded by prevalent mental health issues. As policymakers seek to address this multifaceted crisis, it is imperative to leverage recent data and insights into best practices surrounding education reform and support programs.

  • The report underscores the importance of addressing quality job creation, aligning educational curricula with the actual needs of the labor market, and institutionalizing mental health support to revitalize the engaged workforce, particularly among the youth. Notably, around 17% of young people fall into the 'Kangaroo Tribe, ' with the majority expressing no desire to seek employment. This stark statistic highlights a generation increasingly disillusioned by wage stagnation, high competition, and limited job availability. Furthermore, the growing mental health concerns among this demographic necessitate immediate intervention, emphasizing the need for psychological and emotional support structures to assist youth in re-engaging with the job market. With a united and well-structured response, South Korea can effectively reposition its youth for sustained economic vitality.

  • Crucial policy recommendations must focus on expanding quality job opportunities particularly in high-growth sectors like technology and healthcare. Concurrently, there is a pressing need for reform in educational and vocational systems to better equip students with market-relevant skills. Finally, integrating psychological support and resilience training into community programs can provide the essential resources young individuals need to navigate their personal and professional challenges. By executing these multidimensional strategies, South Korea can build a robust foundation that fosters youth engagement and drives long-term economic growth.

Current Landscape of Youth Unemployment in South Korea

  • Trends in youth unemployment rates

  • As of recent analyses, youth unemployment in South Korea has exhibited troubling trends over the last decade. A significant report published by the Korea Labor Institute noted that the youth unemployment rate has stabilized at levels significantly higher than the national average. Notably, one of the key findings from the 2025 analysis based on the Economically Active Population Survey indicated that the rate of unemployment among young individuals, those aged between 15 and 29, rose to approximately 9% in 2024, reflecting the impact of economic downturns and post-pandemic recovery uncertainties. This ongoing elevation in unemployment rates has compelled policymakers to scrutinize the structural factors at play and instigate dialogues surrounding urgent reforms needed in the labor market. Furthermore, it was observed that the economic conditions arising from the COVID-19 pandemic had instigated a downward shift in employment opportunities, particularly in the service and retail sectors, which traditionally employ significant numbers of young individuals.

  • Rise of the ‘Kangaroo Tribe’ phenomenon

  • The 'Kangaroo Tribe, ' a term used to describe economically inactive young South Koreans who have withdrawn from the labor market, has shown a remarkable increase in prevalence. A pivotal study released on July 7, 2025, established that this demographic now comprises roughly 17% of the economically inactive youth population. Importantly, 77% of these individuals aged between 19 and 39 indicated they had no intention of seeking employment. The analysis revealed that the number of 'Kangaroo Tribe' members has been exacerbated by growing disillusionment with job prospects, a tendency heightened since the pandemic, as many young people cited issues surrounding job availability, competition, and the perceived irrelevance of available positions to their qualifications. Furthermore, the willingness to re-engage with the job market has drastically fallen, with indications that only 31% of those traditionally inclined to work expressed current readiness to accept job offers—down from 54% in previous years.

  • Labor force participation decline

  • Labor force participation among South Korea's youth has experienced a pronounced decline. According to the detailed longitudinal data spanning from 2015 to 2024, reports highlighted a significant reduction in active labor engagement among young adults, with an observable increase in those labeling their status as simply 'resting.' The share of youth engaged in full-time education has remained relatively stable; however, the proportion of those who describe themselves as 'resting' has doubled over the last decade from 10.5% in 2013 to 20% by 2023. This alarming trend signals a deepening disengagement from the labor market, with many young individuals preferring to remain inactive rather than face the challenges of job searching. Consequently, this decline not only complicates economic recovery efforts but also poses questions regarding the social and psychological implications of prolonged inactivity, leading to a generation at risk of entrenchment in a cycle of economic despair.

Structural Drivers of the Employment Crisis

  • Quality job shortages and industry mismatches

  • The South Korean labor market is currently struggling with notable shortages of quality jobs, particularly for youth. This situation has been exacerbated by significant mismatches between the skills that young job seekers possess and the qualifications sought by employers. According to recent reports, many young adults express frustration over the lack of job opportunities that align with their education and skills, leading to increased economic inactivity. This trend has contributed to a stagnation in youth employment, as evidenced by data reflecting a decline in job-seeking behavior among economically inactive youth, with approximately 77% of this population expressing no intention to seek work.

  • The mismatch is particularly pronounced in industries that are growing and evolving but are unable to attract a workforce equipped with the relevant skills. Employers report difficulties in finding candidates with the necessary technical skills and practical experience for roles in sectors such as technology and engineering, despite high numbers of graduates in related fields. This disconnect points to an urgent need for policy interventions that facilitate better alignment between educational institutions and industry requirements.

  • Education–industry skills gap

  • A pressing concern contributing to the youth employment crisis in South Korea is the pervasive education–industry skills gap. As industries evolve, driven by technological advancements and changing market dynamics, the competencies demanded by employers are evolving at an unprecedented pace. However, many educational institutions have not adapted their curricula to meet these new requirements. Reports indicate that graduates often enter the workforce lacking essential soft skills such as communication, problem-solving, and teamwork, which are increasingly prioritized by employers.

  • Evidence gathered from recent surveys shows that many young graduates, despite their academic qualifications, feel unprepared for the job market. This disconnect has resulted in many youth remaining outside the workforce, with some individuals discouraged from job hunting altogether. The need to incorporate practical training and work-based learning opportunities into educational programs is critical. Developing partnerships between schools, universities, and industries could help bridge this gap, preparing students more effectively for the realities of the workforce.

  • High competition and hiring barriers

  • Young job seekers in South Korea face an intensely competitive labor market, exacerbated by high rates of unemployment among their peers. The competition is fierce, not only due to the high number of graduates entering the job market but also because many established workers are reluctant to retire or leave their positions due to economic uncertainties. This creates higher barriers for newcomers trying to land entry-level roles.

  • Additionally, hiring practices often include stringent criteria concerning experience and qualifications that many young applicants are unable to meet, further complicating their re-entry into the labor force. Factors such as internships or applicable work experience, which might be expected in many job descriptions, create hurdles for recent graduates. A conducive environment for hiring can be fostered through policies aimed at lowering barriers such as enhancing internship programs, promoting youth-specific job fairs, and encouraging risk-sharing incentives for employers hiring young talent.

Psychological and Well-Being Challenges

  • Mental health trends among young people

  • Recent data highlights a concerning upward trend in mental health issues among young people in South Korea, which is completely pertinent to understanding the broader context of the youth employment crisis. For instance, a report published on July 9, 2025, indicates that the prevalence of depression diagnoses among elementary school children has more than doubled over the last five years. Specifically, the number of cases surged from 2, 066 in 2020 to 4, 892 in 2024, reflecting a 2.4-fold increase. This alarming situation warrants urgent attention and early intervention, as young individuals navigate various emotional burdens linked to their social and academic environments. Increased academic pressure, digital distractions, and issues stemming from family dynamics contribute significantly to mental health challenges.

  • Furthermore, data suggests that older children, particularly boys, are disproportionately affected by these rising mental health disorders. For example, 48 out of every 100, 000 six-year-olds were diagnosed with depression last year, compared to a staggering 309 per 100, 000 among 11-year-olds. This stark disparity signals the necessity for tailored interventions that acknowledge age and gender-related factors, particularly in coping strategies for young males who face subtle yet substantial social pressures.

  • Impact of prolonged joblessness on self-esteem

  • Prolonged unemployment has catalyzed a detrimental impact on the self-esteem and mental well-being of young individuals in South Korea. As adolescents grapple with joblessness, their sense of identity and worth becomes increasingly intertwined with employment opportunities, which are often viewed as indicators of social status and personal success. This correlation emphasizes the psychological toll that stems from being part of the disillusioned 'Kangaroo Tribe'—a term denoting the economic detachment of youth from the traditional workforce. When young people are unable to secure meaningful job opportunities, feelings of inadequacy and anxiety become prevalent, further exacerbating the existing cyclical nature of unemployment and mental health issues.

  • Research indicates that when youth experience extended periods of joblessness, their self-esteem can plummet, often leading to depression and anxiety disorders. Employing statistical and qualitative insights, it becomes evident that joblessness is not merely an economic issue but also a significant psychological challenge that requires immediate attention. Therefore, exploring ways to rehabilitate self-esteem—for instance, through community engagement, volunteer work, or youth-oriented mental health initiatives—may play a paramount role in counteracting the adverse psychological effects of prolonged unemployment.

  • Role of exercise and resilience programs

  • Physical activity emerges as a critical determinant of mental health, particularly among adolescents who are at a developmental milestone marked by emotional volatility and social pressures. Evidence supports the notion that regular exercise significantly contributes to mental well-being, serving as both a preventative measure against stress-induced disorders and a therapeutic avenue for overcoming existing psychological challenges. Frameworks supported by such findings advocate that youth who engage in regular, structured physical activity experience a marked decrease in feelings of anxiety and depression compared to their sedentary peers. For example, a systematic review emphasizes that young individuals who are physically active are 20-30% less likely to display depressive symptoms.

  • Moreover, resilience programs focusing on cultivating adaptable coping strategies are proving critical in supporting youth through financially unsteady times. These programs not only teach emotional regulation but also promote the development of a positive outlook and life skills necessary to navigate adversities. With the complexities faced by today's youths, integrating exercise and resilience training into community and school programs may foster a generation equipped to meet challenges head-on. By addressing mental health through resilience-oriented practices and fostering a culture of physical activity, South Korea can help its youth transform setbacks into opportunities for growth and development.

Policy Recommendations for Sustainable Youth Employment

  • Expanding quality job creation in growth sectors

  • To address the systemic issues contributing to youth unemployment in South Korea, it is essential to expand quality job creation, particularly in sectors identified for growth in the coming years—such as technology, renewable energy, and healthcare. The government's focus should be on aligning workforce capabilities with these sectors, creating jobs that not only meet current market demands but also provide pathways for youth to develop meaningful careers. This can involve strategic public-private partnerships to stimulate job creation initiatives that prioritize sustainability and innovation. Moreover, potential employment-generating sectors should be targeted with tailored policies that incentivize businesses to hire and train young people.

  • Reforming education and vocational training

  • Education reform is critical in bridging the gap between the skills young people possess and the skills required by emerging industries. A comprehensive review of the education system should be initiated, reforming curricula to emphasize not only academic knowledge but also practical skills, critical thinking, and adaptability. Programs that provide vocational training linked to real-world job opportunities should be implemented, offering young individuals hands-on experiences that bolster their employability. This would not only address the existing skills gap but also empower youth by equipping them with the tools needed to thrive in a technology-driven job market. Furthermore, educational institutions should collaborate with businesses to ensure that training is relevant and up-to-date with industry changes.

  • Establishing accessible mental health and resilience services

  • Given the psychological challenges faced by youth, particularly those grappling with unemployment, establishing accessible mental health and resilience services is imperative. Building on the insights from recent studies on resilience, programs must be developed that focus on enhancing coping strategies, nurturing emotional regulation, and fostering supportive relationships. These services should be integrated within educational institutions and community centers to ensure that mental health support is easily accessible to all young individuals. Furthermore, training for educators and youth workers in identifying and addressing mental health issues can foster a healthier environment for young people, enabling them to navigate the stresses of job searching and societal pressures more effectively.

  • Implementing targeted employment subsidies and incentives

  • To further stimulate youth employment, it is recommended that the government develops targeted employment subsidies and incentives aimed at employers who hire young workers. Such financial incentives can lower the barriers to hiring and encourage companies to invest in young talent. This could include tax breaks for internships, training programs, or subsidies for mentoring initiatives. The approach would not just seek to lower unemployment rates, but also aim to change the narrative around youth employment by showcasing the potential and capabilities of young workers. In addition, setting up a robust evaluation mechanism will be important to assess the effectiveness of these programs and make necessary adjustments based on real-time feedback.

Wrap Up

  • In conclusion, the youth employment crisis in South Korea represents not just a temporary setback but a profound structural issue with far-reaching implications. The alarming rise of the 'Kangaroo Tribe' and the declining labor force participation present significant economic and social challenges, including diminished human capital and increased mental health burdens. To effectively combat this crisis, a coordinated assortment of policy measures must be implemented. These measures should prioritize the creation of quality jobs that resonate with the aspirations of young people, reform educational and vocational training to bridge the widening skills gap, and incorporate mental health, resilience-building, and career counseling services into existing employment frameworks.

  • Such an integrated approach has the potential to invigorate youth engagement in the workforce, thus reinforcing South Korea's economic viability and demographic sustainability. Moreover, it is essential that the implementation of these strategies is supported by ongoing monitoring, active collaboration among stakeholders, and adjustments based on empirical evidence as labor market demands evolve. By confronting the youth employment crisis proactively and holistically, South Korea can ensure that its young population is not left behind, paving the way for a more resilient and prosperous future.

Glossary

  • Youth Unemployment: Youth unemployment refers to the unemployment rate among individuals aged 15 to 29. As of 2025, South Korea's youth unemployment rate is approximately 9%, significantly higher than the national average, indicating structural issues within the labor market that hinder young people's ability to find work.
  • Kangaroo Tribe: The 'Kangaroo Tribe' describes a growing demographic of economically inactive youth in South Korea who have completely disengaged from the job market. As of recent studies, this group constitutes about 17% of the economically inactive youth, highlighting a significant issue with job search motivation among young adults.
  • Job Mismatch: Job mismatch occurs when there is a disparity between the skills possessed by job seekers and the qualifications required by employers. This disconnect is a significant factor contributing to youth unemployment, often resulting in frustration among young applicants who cannot find jobs aligned with their education and skill sets.
  • Skills Gap: The skills gap refers to the difference between the skills that are in demand in the job market and those that are possessed by job seekers. In South Korea, this gap is evident in rapidly evolving industries where new competencies are needed, but educational institutions have not kept pace with these changes, leaving many graduates unprepared.
  • Mental Health: Mental health encompasses emotional, psychological, and social well-being, affecting how individuals think, feel, and behave. In the context of South Korea's youth employment crisis, rising mental health issues, such as increased rates of depression among young people, complicate the already challenging job landscape.
  • Education Reform: Education reform refers to changes made to improve the educational system, particularly in aligning educational curricula with industry needs. Such reforms are crucial in equipping youth with relevant skills to enhance their employability in a competitive job market.
  • Job Creation: Job creation involves generating new employment opportunities within the economy. For South Korea, expanding job opportunities in high-growth sectors like technology and healthcare is essential to alleviate the youth unemployment crisis and reintegrate young adults into the workforce.
  • Psychological Support: Psychological support includes services and programs designed to promote mental well-being and assist individuals in coping with emotional challenges. In addressing the youth employment crisis, mental health services are crucial for those affected by prolonged joblessness and associated mental health challenges.
  • Employment Subsidies: Employment subsidies are financial incentives provided by the government to encourage employers to hire specific groups, such as youth. These subsidies aim to lower barriers to hiring and stimulate job creation for young workers facing high competition and unemployment.
  • Resilience Programs: Resilience programs focus on developing coping strategies to help individuals manage stress and bounce back from difficulties. Such programs are vital in supporting youth through economic uncertainties, equipping them with skills to navigate the labor market effectively.

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