Youth Employment Drops 255,000 in May as Bottom-20% Income Share Nearly Doubles
Updated
Updated · 매일경제 · Jun 11
Youth Employment Drops 255,000 in May as Bottom-20% Income Share Nearly Doubles
3 articles · Updated · 매일경제 · Jun 11
Summary
255,000 fewer people aged 15 to 29 were employed in May from a year earlier, extending the decline to 43 straight months and marking the steepest drop since January 2021.
43.8% was the youth employment rate, down 2.4 percentage points, as companies increasingly favored ad hoc and experienced hires over traditional open recruitment, delaying entry-level hiring.
29.12 million people were employed overall, down 40,000 from a year earlier—the first total employment decline in 17 months since December 2024.
15.2% of households in both the bottom 20% for net assets and income were people in their 20s and 30s in 2025, up from 7.9% in 2020, the Bank of Korea said.
The central bank warned that surging housing prices and AI-driven wage polarization are squeezing young workers' asset formation and income, potentially weakening domestic consumption.
With youth wealth collapsing, can South Korea solve its job crisis without first fixing its runaway housing market?
South Korea's youth face an AI job crisis, but is a distant war the bigger threat to their future?
US youth unemployment is falling, while South Korea's is plummeting. Why is the AI revolution hitting them so differently?
May 2026 South Korea Jobs Report: Youth Unemployment Surges Amid AI and Economic Shocks
Overview
In May 2026, South Korea faced a sharp employment downturn, with job losses hitting both older workers and the youth. The employment rate for those aged 60 and above dropped for the second month in a row, a trend not seen in over four years. This decline is linked to broader economic pressures, including the impact of the Middle East War. At the same time, the number of people not participating in the workforce continued to grow, highlighting a deepening labor market crisis. These developments signal urgent challenges for South Korea’s economy and society.