A significant surge in inactivity among individuals in their twenties was observed in July, according to a recent report.
South Korea's job market has been on an upward trend, with the employment rate for those aged 15 and older reaching a record high of 63.4 percent in July 2025. However, this growth has not been evenly distributed across all age groups.
The employment rate for the 15-29 age group decreased by 0.7 percent compared to a year before, to 45.8 percent. This decline, despite the overall unemployment rate falling to about 2.4 percent, is a cause for concern. The youth unemployment or underemployment rate has increased to 16.1 percent, reflecting challenges such as discouraged job seekers and underemployment among young people.
A total of 421,000 Koreans in their 20s were categorized as "rested," a term referring to those who did not work or look for a job with no particular reason. This group has grown partly due to a higher proportion of highly educated young people who delay employment decisions because of economic and labor market uncertainties.
Other contributing factors include the structural decline in industries such as manufacturing and construction, which have traditionally absorbed young workers, and a sluggish housing market impacting related sectors. On the other hand, growth sectors like health and social welfare have less youth participation.
Improving youth employment requires early identification of idle young people, shifting social perceptions, customized employment policies based on education level, stronger cooperation between government, schools, and welfare institutions, and expanded psychological and recovery support programs.
While the total employment increased by 171,000 jobs year-on-year in July 2025, driven largely by growth in jobs for those aged 60 and over, employment for those aged 15–29 decreased by 158,000. The agriculture, forestry, and fisheries sector saw the most significant job loss in July 2025, dipping by 127,000 jobs compared to the same month in the previous year.
The number of young Koreans out of the job market for no particular reason was over 420,000 in July. This economic inactivity is estimated to cost the country around $38.3 billion over five years. The number of those who just rested was particularly notable among 20-somethings and the 50-59 group.
In summary, while Korea's overall job market is growing, the youth segment is struggling due to fewer available jobs in youth-typical sectors, the higher education level prompting delayed labor market entry, and a notable rise in young people withdrawing from active job search ("rested") due to economic discouragement. Addressing these structural imbalances is crucial for ensuring a more equitable job market for all ages in South Korea.
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