
South Korea’s labor market in 2024 showed strong overall employment figures, but significant challenges persist for youth employment and gender-based labor disparities. (Image courtesy of Yonhap)
SEOUL, Jan. 17 (Korea Bizwire) — South Korea’s labor market in 2024 showed strong overall employment figures, but significant challenges persist for youth employment and gender-based labor disparities, according to the Ministry of Employment and Labor.
At a briefing on January 16, 2025, the Ministry reviewed detailed employment trends from the Statistics Korea report on December and full-year 2024 employment data and outlined upcoming employment policies.
The nation’s employment rate in 2024 reached a record-high 62.7%, with youth employment also performing well at 46.1%, the third-highest on record. However, young people continue to face difficulties in the labor market due to a shortage of quality jobs, a rise in experienced-worker recruitment, and prolonged job search periods.
A widening wage gap between large and small businesses has intensified these challenges. While more young job seekers aspire to work at large corporations, these companies increasingly prioritize hiring experienced professionals, reducing entry-level opportunities.
Additionally, the number of youth categorized as “resting” (not actively working for the past week) has remained above 400,000 since 2021, primarily due to difficulty finding desirable jobs (32.5%).
The average time for young graduates to secure their first job is now 11.5 months, reflecting delayed labor market entry. The Ministry noted the need for targeted policies to address the blend of economically inactive youth and those temporarily out of work during job transitions.
Notably, 59.4% of youth with a high school education or less fall into the “resting” category, compared to 40.6% of college graduates, highlighting the need for greater support for high school-educated youth.
Gender disparities in employment also persist despite some progress. The female employment rate rose across most age groups in 2024, with the most significant gain of 3.3% among women in their 30s. However, the female employment rate (61.4%) remains below the OECD average (67%), and South Korea continues to have the largest gender wage gap (29.3%) among OECD countries.
Employment among older adults continues to rise, but much of this trend is attributed to high elderly poverty rates. Unlike other countries where older workers are spread across diverse industries, South Korea’s elderly workforce is concentrated in healthcare, welfare, and agriculture.
Employment rates for ages 55-59 rank 22nd among OECD countries, 60-64 rank 13th, while those 65 and older rank first.
A Ministry official emphasized the urgency of efficiently utilizing the workforce amid the rapid aging of the population, particularly focusing on expanding job opportunities for the late baby boomer generation now entering retirement.
Looking ahead, the Ministry anticipates limited job growth in January and February 2025 due to base effects but expects gradual improvement from March onward. However, risks of weaker-than-expected employment figures remain.
The Ministry pledged to collaborate with related agencies to stabilize livelihoods and expand job creation, particularly for vulnerable groups. Plans include tailored measures for youth, middle-aged workers, and small business owners, along with joint job fairs and regional recruitment events to stimulate hiring momentum.
M. H. Lee (mhlee@koreabizwire.com)