A job fair (Image courtesy of Yonhap)
SEOUL, Dec. 3 (Korea Bizwire) – South Korea is witnessing a sharp rise in young people opting out of work or job-seeking, raising fears of a growing NEET (Not in Education, Employment, or Training) population, according to a recent report by the Bank of Korea.
The study, released on Monday, reveals that the number of young people aged 25-34 who identify as “taking a break” surged to 420,000 this year, marking a 25.4% increase over the past year. Among these, 28.2% voluntarily chose unemployment, while 71.8% were involuntarily idle.
The central bank attributes the trend to structural mismatches in the job market. Despite higher educational attainment compared to older workers, young job seekers often struggle to find quality positions that align with their expectations. This mismatch has been exacerbated by a post-pandemic decline in job quality for younger demographics.
“The lack of desirable, high-quality jobs has become a major factor pushing young people to voluntarily exit the labor market,” the report stated.
Involuntary disengagement among young workers has also risen significantly, correlating with a slight downturn in youth employment rates earlier this year, even as employment among middle-aged workers continues to grow.
The Bank of Korea cautioned that prolonged detachment from the labor force could lead to a permanent exodus of young people from the job market, escalating the risk of a long-term NEET population. The report urged policymakers to implement targeted measures to reintegrate these individuals into the workforce.
South Korea’s trajectory mirrors Japan’s challenges in the early 2000s, when a spike in NEET youth later evolved into a broader disengagement among middle-aged workers. This serves as a cautionary example for South Korea, where youth disengagement could have long-lasting economic and social implications.
Ashley Song (ashley@koreabizwire.com)
