Q1 Unemployment Tops 1 Million, Youth Face Deepening 'Employment Ice Age'

The number of unemployed people in South Korea exceeded 1 million for the first time in five years during the first quarter. The average number of unemployed individuals stood at 1.029 million, an increase of 49,000 compared to the same period last year. This is the first time quarterly unemployment has surpassed the 1 million mark since 2021.

The National Statistical Office attributed the rise in unemployment partly to delays in restarting direct job creation projects and an increase in applicants for civil service exams. Structural factors, such as individuals who are temporarily not working ('resting') transitioning through unemployment before finding jobs, were also reflected.

Young people, in particular, are facing difficult circumstances due to job scarcity and recruitment challenges. In the first quarter, the number of unemployed individuals aged 15-29 was 272,000, accounting for 26.4% of the total unemployed. This marks a 10,000 increase from the previous year, extending the trend of rising youth unemployment for the second consecutive year. The youth unemployment rate rose to 7.4%, up 0.6 percentage points year-on-year.

Employment for young people aged 15-29 dropped by 156,000 from a year earlier to 3.423 million, marking the 14th consecutive quarterly decline. The youth employment rate fell 1.0 percentage point year-on-year to 43.5%, declining for the second year in a row.

In contrast, the employment rate for individuals in their 30s reached a record high for the first quarter, standing at 80.7%. In response to the sluggish youth employment situation, the government plans to announce a 'Youth New Deal Initiative' this month, which will include measures to strengthen job skills, provide work experience, and offer psychological support.