"Preference for Experienced Hires and More AI: Employment Insurance Subscribers Under 30 Decline for 47 Consecutive Months"

The youth unemployment crisis continues as several factors converge: the economic downturn, companies’ preference for experienced hires, and the expansion of artificial intelligence (AI) adoption. As a result, the number of regular employment insurance subscribers aged 29 and under has decreased for 47 consecutive months.

Yonhap News

According to the “July Labor Market Trends Based on Employment Administration Statistics” released by the Ministry of Employment and Labor on August 10, the total number of regular employment insurance subscribers last month was 15,877,000, an increase of 277,000 (1.8%) compared to the same month a year earlier. The overall increase in subscribers has remained in the high 200,000 range for seven consecutive months.

By age group, the number of subscribers increased in all age brackets above 30. The growth was led by those in their 30s (85,000), 50s (37,000), and those aged 60 and over (209,000), while the number in their 40s (4,000) also turned to an increase for the first time in 33 months, driven by increased female participation in economic activities.

On the other hand, the number of subscribers aged 29 and under decreased by 57,000 compared to the previous year, marking 47 consecutive months of decline since September 2022. This trend appears to stem from a combination of the structural factor of population decline and the blow to youth employment.

An official from the Ministry of Employment and Labor explained that more than half of the decrease in youth subscribers is due to the population decline, while the remainder is attributed to the economic downturn, companies’ preference for hiring experienced workers, and the reduction in new graduate recruitment due to the introduction of AI and robotics. There is a widespread expectation that the youth job market is unlikely to recover in the short term.

By industry, the service sector drove the overall increase in subscribers, adding 285,000 (2.6%). Nearly all major industries saw increases in subscribers, including health and welfare (112,000), accommodation and food services (57,000), and business services (26,000).

In contrast, the manufacturing and construction sectors continued to struggle. The number of manufacturing subscribers was 3,844,000, a decrease of 2,800 (0.1%) from a year earlier, posting a decline for the fourteenth consecutive month.

Within the manufacturing sector, polarization by industry was pronounced. Export-strong sectors such as semiconductor-related electronics and communications manufacturing (4,600) and shipbuilding and other transport equipment manufacturing (6,400) saw increases in subscribers. Meanwhile, textiles (-3,200), chemicals (-2,900), and automobiles (-2,400) experienced ongoing difficulties as their subscriber numbers continued to fall.

The number of construction subscribers also declined due to persistent industry recession, falling by 7,200 (1.0%) from the same month last year to 743,000, extending its downward trend for 36 consecutive months. However, the pace of decline has gradually slowed.

Meanwhile, the number of new applications for job-seeking (unemployment) benefits in July stood at 109,000, down by 2,000 (2.2%) from the same month a year earlier. The total amount paid decreased by 21.8 billion won (2.0%) to 1.0904 trillion won.

This content was produced with the assistance of AI translation services.