Accra:Despite a rise in exports and overall employment growth for the third consecutive month, South Korea's youth employment continues to decline. The latest employment report from the Ministry of Data and Statistics reveals that while the manufacturing sector recovered from a two-year downturn, employment among individuals aged 15 to 29 decreased for the 47th month in a row.
According to Yonhap News Agency, the number of employed young people fell by 147,000 compared to the previous year, reducing their employment rate to 44.0 percent. The youth unemployment rate increased to 5.4 percent, contrasting with the national unemployment rate, which dropped to 2 percent, marking the lowest September reading since 1999.
Efforts to broaden the statistical definition of youth have provided little relief. A revised law now includes data for people aged 15 to 34, but this broader group still saw an employment decline of 98,000. The figures highlight the struggles faced by young job seekers, exacerbated by hiring practices that favor experienced workers and the impact of automation and artificial intelligence on entry-level jobs.
Rigid pay structures and a divide between secure and temporary employment further complicate the labor market. As plans to extend the statutory retirement age loom, concerns arise about their impact on younger workers' job prospects. The government is urged to balance retirement policies with measures to increase entry-level hiring opportunities.
Strategies to address these issues include distinguishing between temporary relief measures and the creation of high-quality jobs. While cash assistance and training can aid job seekers, the focus should be on sustained employment. The private sector, especially in high-value services and innovative industries, is viewed as key to creating broader job opportunities.
The government's nationwide employment initiative must prioritize meaningful labor reforms and industrial policies that stimulate private investment and demand. Without such measures, impressive economic growth figures may come at the cost of future prosperity for the younger generation.