A Bank of Korea report shows the share of young South Koreans aged 20-34 neither working nor job-seeking rose to 22.3% in 2025 from 14.6% in 2019. The trend, linked to AI-driven labor market changes and slowing economic growth, signals structural strains and potential long-term labor shortages. Officials call for reforms to encourage youth re-entry into the workforce.
On January 20, 2026, the Bank of Korea (BOK) released a report on youth employment, highlighting a surge in young South Koreans exiting the labor market. The proportion of people aged 20-34 classified as "resting"—neither employed nor engaged in job searches, education, or training without reasons like childcare or illness—increased to 22.3% in 2025 from 14.6% in 2019. The number of youths explicitly stating they do not want to work rose to around 450,000 last year, up from 287,000 in 2019.
Those with junior college education or less form the bulk of this group, but the share of university graduates has risen sharply in recent years, the BOK noted. The central bank attributes the trend to structural factors: artificial intelligence (AI)-driven shifts in the labor market, companies' preference for experienced workers, and decelerating economic growth. It also debunked myths, stating that "resting" youths' average minimum expected annual salary is about 31 million won ($20,975), aligning with other unemployed young people.
"The increase in young people simply out of the job market could reduce labor supply not only in the short term but also over the longer term, undermining the country's overall economic growth potential," said Yoon Jin-young, a BOK official and the report's author. "The issue should be addressed not only as a cyclical challenge but also as a structural one," Yoon added, urging stronger incentives and policy measures to encourage re-entry into the labor market and improve youth employment conditions through reforms.
The report underscores broader concerns about South Korea's youth employment crisis and the need for systemic changes to bolster economic vitality.
