The employment rate for individuals in their 20s decreased in 2025 for the first time in five years due to a shrinking population and a weak job market. Data from the Ministry of Data and Statistics revealed that the employment rate for this age group was 60.2 percent last year, marking a 0.8 percentage point decline from the previous year. This decline, totaling 170,000 fewer employed individuals in their 20s, has been ongoing for three consecutive years and has been intensifying.
The decrease in the number of employed individuals in their 20s has outpaced the population decline, indicating a broader labor market weakness. Factors such as a shrinking population and a preference among individuals to delay job-seeking until their 30s have contributed to this trend. Data also indicated that jobs in large conglomerates increased slightly in 2024, with a higher percentage of jobs being held by existing employees, suggesting limited job mobility.
President Lee Jae Myung expressed concerns about the growing economic disparity in the country, particularly its impact on the youth. During an economic growth strategy meeting, he highlighted the challenges posed by the country’s K-shaped economy, where certain sectors experience rapid growth while others decline. Lee emphasized that this economic polarization disproportionately affects young people and poses a significant threat to the nation’s future growth prospects. He noted that over 400,000 young individuals have been excluded from the job market, emphasizing the need for addressing the lack of entry-level opportunities.
