Key facts
- South Korea will soon announce detailed measures to create jobs for young people.
- The plan aims to address recent challenges in the labor market, particularly for youth and the manufacturing sector.
- In July, South Korea's youth employment rate fell 1.6 percentage points to 44.2 percent.
- The youth unemployment rate rose 1.3 percentage points to 6.8 percent in July.
- The government will accelerate its three megaprojects initiative, focusing on semiconductors, AI, and data centers.
South Korea is preparing to announce specific measures aimed at boosting job creation for its youth, as the country grapples with persistent labor market challenges. Finance Minister Koo Yun-cheol stated that the government plans to promptly introduce these measures, alongside tailored policies for sectors facing difficulties, such as manufacturing and construction.
Recent data highlights the severity of the issue, with the employment rate for individuals aged 15 to 29 falling by 1.6 percentage points to 44.2 percent in July, marking the 27th consecutive month of year-on-year decline. Concurrently, the unemployment rate for this age group increased by 1.3 percentage points to 6.8 percent, the largest year-on-year rise in over five years. Manufacturing jobs also saw a significant decrease, down 68,000 in July from the previous year, continuing a 25-month trend of contraction. Construction-related jobs have also experienced a year-on-year decline for 27 consecutive months.
Minister Koo attributed some of the employment pressures to external factors, including the prolonged Middle East war and an unprecedented heat wave coupled with drought in certain regions. To address these issues, the government intends to accelerate its 'three megaprojects initiative.' Unveiled in late June, these projects focus on large-scale investments in a semiconductor production cluster, physical AI, and AI data centers in regional areas, with the goal of securing growth engines and creating quality jobs that appeal to young people.