Among South Korea’s unemployed, those aged 25 to 29 account for 20.3%, the highest proportion among the 38 OECD member nations. This means one in five unemployed individuals in South Korea is a young adult in their late 20s. Experts attribute this trend to prolonged low economic growth and shrinking entry-level hiring by companies, which have made it more difficult for this demographic to secure jobs. Those who fail to land regular employment are left to compete with retirees in their 50s and 60s for non-regular positions.
According to OECD statistics released on Nov. 24, the proportion of unemployed individuals aged 25 to 29 in South Korea rose from 19% in 2021 to 19.6% in 2022, exceeding 20% last year. South Korea has held the top spot in this category for three consecutive years since 2021, after ranking third in 2019 and 2020. Those in their 20s, born between 1995 and 2004, are commonly referred to as Generation Z.
However, South Korea’s youth unemployment rate itself is not significantly higher than that of other OECD countries. In 2023, the unemployment rate for South Koreans aged 25 to 29 was 5.9%, lower than Spain (15.7%), France (9.9%), and Canada (6.3%), but slightly higher than the U.S. (4.4%), the U.K. (4.2%), and Japan (4.1%). The disproportionately high share of late 20s among the unemployed reflects the steep barriers to entry-level jobs, which are often of higher quality than those in other countries. The average time it takes a college graduate in South Korea to secure their first job has risen from 10.8 months in 2019 to 11.5 months this year. A report by the Korea Development Institute (KDI) indicates that a one-year delay in entering the workforce can lead to 4–8% lower annual earnings over the following decade.
A 27-year-old job seeker, identified as A, completed graduation requirements at a Seoul university two years ago but delayed formally graduating after repeated failures in job applications. Large corporations often favor candidates who are still enrolled over those who have already graduated. After being rejected in both the spring and fall recruitment rounds last year, A continues to prepare for entry-level positions at major firms. To manage living expenses, the job seeker began working part-time as a delivery rider on weekends, earning about 400,000 to 500,000 won monthly. “Fewer companies are hiring inexperienced graduates like me,” A said. “With the economic downturn dragging on, I worry I might still be delivering next year.”
Generation Z in South Korea faced unique challenges, as many of them were in university or preparing for jobs during the height of the COVID-19 pandemic from 2020 to 2022. During this period, language tests, certification exams, and internships were delayed or canceled, severely limiting opportunities to build resumes. Compared to previous generations, they had fewer chances to accumulate skills and experience.
The economic slowdown has further exacerbated challenges, reducing both job openings and the number of employed 20-somethings. Statistics Korea reports that the number of employed individuals in their 20s fell from 3.78 million in the second quarter of last year to 3.61 million in the third quarter this year, marking a decline for five consecutive quarters.
