South Korea: Young people choosing to stay out of the workforce causes huge economic damage

VTV.vn - The number of Koreans aged 20-39 not participating in the labor market continued to increase sharply in October 2025.

South Korean youth opting out of the workforce is causing huge economic damage.

The number of South Koreans aged 20–39 not participating in the labor market continued to rise sharply in October 2025, raising concerns about the long-term impacts on growth and the quality of human resources, industry sources said on November 18.

According to the Ministry of Statistics and Statistics of Korea, the group of young people classified as “leisurely” – meaning not looking for work, not studying, not taking care of their family and not economically unemployed – reached a record high of 736,000. Of these, 402,000 were in their 20s and 334,000 were in their 30s. The fact that this group is not counted as a labor force makes unemployment figures “fake”, although the unemployment rate in October was recorded at 2.2%.

Experts warn the situation is more serious than statistics suggest. Professor Shin Se Don of Sookmyung Women's University said the unemployment rate appears to be decreasing, but the number of young people who are long-term unemployed – those looking for work for more than six months – has reached 35,000, the highest level since September 2024.

The Korean Ministry of Employment and Labor pointed out the “mismatch” between capacity and recruitment needs. While many graduates have difficulty finding suitable jobs, corporations have cut quotas, causing businesses nationwide to still leave 108,000 vacant positions in the first quarter. The main reasons include a lack of candidates with suitable experience (25.6%) and working conditions and salaries that do not meet expectations (20.6%).

A study by the Federation of Korean Industries estimates that the “resting” of young people will cost the country’s economy 44.5 trillion won (US$30.41 billion) in lost income between 2019 and 2023, equivalent to the income they could have generated if they had worked at an average wage of 80% of that of employed people of the same age.

Source: https://vtv.vn/han-quoc-gioi-tre-chon-dung-ngoai-luc-luong-lao-dong-gay-thiet-hai-kinh-te-lon-100251118211909474.htm