The number of young Koreans aged 15 to 29 who were “just taking a break,” otherwise known as “not actively seeking work,” reached a record 443,000 in July. This figure was in the 200,000 range from 2013 to 2017 but crossed the 300,000 mark in 2018 and surged to 441,000 during the 2020 COVID-19 pandemic. While the figure dropped to the 300,000 range in 2022, it has been climbing steadily since, rising by 10.4% in July compared to a year ago. As the number of young people not in education, employment, or training grows while the overall youth population continues to shrink, the proportion of those “just taking a break” from the workforce has reached an all-time high. One in 20 young adults (5.4%) are neither working nor seeking employment.
When the age range is expanded to include those in their 30s, the number of young Koreans opting out of work exceeds 730,000. In July, 288,000 Koreans in their 30s were “just taking a break,” up 10.5% from a year earlier. Despite the recovery in exports, the prolonged downturn in domestic demand and the sluggish recovery in manufacturing employment have forced many self-employed individuals who have lost their jobs or closed their businesses to exit the labor market.
The official unemployment rate in July was 2.5%, and the youth unemployment rate was around 5.5%. But these figures do not fully capture reality - the unemployment rate perceived by young Koreans is much higher because those who are not actively seeking work and are simply “taking a break” are excluded from unemployment statistics. Of those who did say they wanted to work but were not job hunting, 42.9% cited the lack of desirable job opportunities as the reason for their inactivity. This suggests that young Koreans in their 20s and 30s are increasingly leaving the labor market because they can’t find jobs that meet their expectations.
This trend is particularly troubling because young adults in their 20s and 30s are typically the backbone of the workforce. After conducting an in-depth survey on young people “taking a break,” the government announced a step-by-step support plan last November to help them re-enter the labor market. But nine months on, the number of young people not actively seeking work has soared to record levels, indicating that the policy has been ineffective. The government must thoroughly review and overhaul its policies to address this pressing issue.
