Seoul: Is AI already affecting the job market? According to a January employment report released on Wednesday, the number of workers in professional, scientific, and technical sectors fell by 98,000 from a year earlier, marking the largest decline since the industry classification was revised in 2013. The drop was notably significant in specialized services such as accounting, legal work, and tax consulting.
According to Yonhap News Agency, AI-based task automation has rapidly spread across these fields in recent years, raising concerns about diminishing employment opportunities. Of the approximately 1,200 individuals who passed last year's public accountant certification exam, many reportedly struggled to secure practical training placements due to a decline in entry-level hiring.
An official from the Ministry of Data and Statistics indicated that the trend might partly reflect a technical adjustment following growth in these sectors in 2023. However, the development of AI is also noted as potentially negatively impacting the hiring of junior staff in specialized services. While it remains uncertain whether AI-driven job losses will persist, the expanding influence of the technology on employment requires close monitoring.
Industries are already visibly altering. Demand for software developers surged after the release of ChatGPT in November 2022, but recent rapid advances in AI have begun to moderate hiring in that field. AI is also impacting manufacturing, with Hyundai Motor announcing plans to deploy humanoid robots at production sites starting in 2028, underscoring that automation is an irreversible trend. Just as the Luddite movement failed to halt the Industrial Revolution in 19th-century Britain, the AI transformation is unlikely to be reversed.
Many young people remain unprepared for this technological shift. The youth employment rate stood at 43.6 percent in January, the lowest level since 2021, and the number of people classified as "inactive but not seeking work" has exceeded 2.78 million, highlighting the severity of the employment downturn.
With AI reshaping industries and labor markets faster than anticipated, the government needs to expedite labor market reform. Workforce planning must reflect changes in industrial demand and be supported by stronger retraining and job transition programs. Removing outdated regulations to encourage the creation of new jobs will be essential in helping workers adapt to the structural changes ahead.