[Editorial] Narrowing Employment Opportunities for Youth... Start by Assessing the Impact of AI

Youth employment has been sluggish for a prolonged period. According to employment trends for August released by the Ministry of Data and Statistics, the number of employed youth aged 15 to 29 decreased by 143,000 compared to a year ago. The employment rate fell by 1.0 percentage point to 44.1%, marking a decline for 28 consecutive months. The reasons are multifaceted. Factors such as a decrease in the youth population, economic downturn, and companies' preference for experienced workers have been cited. More recently, there are also observations that the introduction of artificial intelligence (AI) has led to a reduction in new hires, as AI is replacing entry-level work. However, there are few scientific analyses regarding the extent of AI's impact.

The Bank of Korea has stated that out of 285,000 youth jobs lost over the past four years, 268,000 were from industries with a high level of AI exposure. While this is noteworthy, there are clear limitations to interpreting it as "AI reduced 94% of youth jobs." The fact that an industry is highly exposed to AI and that jobs in that industry have decreased does not necessarily mean that AI is the direct cause. To properly establish policies to support youth employment, it is crucial to clarify this point first.

It is necessary to examine each factor---to what extent entry-level tasks such as research, document preparation, and simple repetitive work are being replaced by AI; whether companies have shown a marked preference for experienced employees over new hires since adopting AI; and whether companies are reluctant to hire new employees because of training costs or due to other economic or industrial factors. If AI is indeed the primary cause, new pathways must be developed for youth to gain experience and build expertise by utilizing AI.

The government must go beyond relying on indirect indicators such as "industries with high AI exposure" and instead compare youth hiring trends between companies that have actually implemented AI and those that have not, as well as between those that use AI for automation and those that use it for work assistance. Based on such analysis, the government needs to determine which factors carry the most weight and reconsider the direction and priority of existing policies. It is neither necessary to hastily deem AI as the culprit in youth employment stagnation, nor is it acceptable to do nothing simply because the impact is unclear. The starting point of measures for youth employment should be to understand how AI is transforming the first job opportunities available to young people.

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