190,000 Youth Jobs Lost... Half from 'High AI Exposure' Sectors

98,000 Jobs Lost in Information and Communications, Professional Science and Technology Sectors
Shift in the Core of Declining Youth Employment

More than half of last month's decline in youth employment came from so-called 'high AI exposure' sectors such as information and communications, as well as professional, scientific, and technical service industries.

According to an analysis of microdata from the Economically Active Population Survey by the Ministry of Data and Statistics, reported by Yonhap News Agency on the 16th, the focus of declining youth employment—which had previously been centered on face-to-face service industries like manufacturing and accommodation/food services—has this year shifted towards industries with a high level of AI utilization.

The analysis shows that the number of employed youths (aged 15 to 29) in July decreased by 191,362 compared to the same month last year. Of this total, youth employment in the information and communications sector fell by 74,517—a record monthly drop since online microdata analysis became available in 2014.

Job Plus Center at a university in Seoul. The core of the decline in youth employment has shifted this year to industries with a high utilization of AI. Yonhap News

Youth employment in the professional, scientific, and technical service sector also declined by 23,640. Combined, these two industries accounted for a loss of 98,157 youth jobs, representing 51.3% of the total decrease in youth employment.

The information and communications sector includes publishing, postal and telecommunications, computer programming, and more. The professional, scientific, and technical services sector includes research and development, as well as specialized legal, accounting, tax, and consulting services. Both industries are considered highly susceptible to the impact of AI.

This shift has been particularly pronounced this year. Last year, manufacturing and accommodation/food service industries accounted for 67.5% of the total decline in youth employment, dominating the overall decrease. In contrast, the share of job declines attributed to information and communications and professional, scientific, and technical services rose to 65.6% in February of this year, dropped to 33.1% in March, hovered in the 40% range thereafter, and climbed again to 51.3% in July.

However, analysts caution that these statistics alone are not sufficient to conclude that AI is the direct cause of declining youth employment. Cross-analysis of age and industry microdata may involve sampling errors, and since youth employment in these two sectors has steadily increased until recently, both baseline effects and temporary adjustments in employment may also be at play.

Meanwhile, the Bank of Korea noted in its February 2023 report, 'AI and the Korean Economy', that 51% of domestic jobs are expected to be significantly affected by AI adoption. The report also found that the youth workforce is relatively more concentrated in jobs with high AI exposure.

The Bank of Korea emphasized that "AI can represent both opportunity and crisis for young people and the highly educated/high-income demographic," stressing the need to strengthen education, retraining, and social safety nets.

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