Seoul, South Korea – A recent survey conducted by the Bank of Korea has revealed a significant increase in the number of young South Koreans who are neither working nor actively seeking employment. The report, titled "Background and Assessment of the Increase in the Number of Young People Who Are Not in Employment," shows that the number of young adults aged 25-34 who have been "taking a break" from work has surged by 86,000 over the past year.
As of the third quarter of this year, the total number of young people classified as "not in employment" reached 422,000, representing a 25.4% increase compared to the same period last year. This means that nearly one in three individuals who are not economically active are young people. Experts warn that this trend could lead to a loss of potential labor force, hindering economic growth.
The Bank of Korea attributed the rise in "not in employment" youth to involuntary factors, accounting for 71.8% of the total. This indicates that many young people are not working due to a lack of suitable job opportunities, particularly in sectors like small and medium-sized enterprises (SMEs) and face-to-face services, which have been hard hit by the economic downturn.
The report also highlights the risk of these young people becoming long-term unemployed or "NEETs" (Not in Education, Employment, or Training). While 90% of young people who voluntarily left their jobs within the past year expressed a desire to return to work, this figure dropped to 50% for those who had been out of work for a year or more. Consequently, the probability of finding employment for those who are "not in employment" is significantly lower (5.6%) compared to those who are actively seeking work (26.4%).
The Bank of Korea emphasized the need for policy measures to encourage these young people to re-enter the labor market. The growing number of "not in employment" youth is seen as a threat to future labor supply and could negatively impact economic growth.
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