Seoul Warns Youth Joblessness Could Threaten South Korea’s Survival

South Korea is warning that record numbers of young people disengaging from work and school could threaten the country’s future, according to a new report from Nikkei.

Nikkei calls them “young people not in employment, education or training” – or NEETs. If we had to think of a term to call them, we’d venture a guess and call them daily crypto daytraders using leverage all day. 

Regardless, Employment and Labor Minister Kim Young-hoon told Nikkei the trend “could lead to the extinction of communities, and by extension the extinction of the nation itself.”

Nikkei writes that despite a shrinking youth population — down 13% in a decade to 8.15 million people aged 15-29 — the number of NEETs has surged 50% to 420,000. They now make up 5.2% of the age group, the highest share ever recorded.

Many cite burnout, harsh working conditions or unrealistic job requirements as reasons for dropping out. One respondent said listings demanded qualifications “that are impossible for new people,” while another recalled “working double shifts wearing dust-proof suits” and deciding it was better to stay home.

Kim says “jobless growth” at big companies, driven by automation and a preference for experienced hires, has undercut new hiring. The Bank of Korea says young workers are increasingly overqualified for what’s available. The economic cost of rising NEET levels reached 44.5 trillion won ($31.3 billion) over five years, and 38% of NEETs now hold college degrees or higher.

The longer young people stay out of work, the harder it is to return — 90% of those who switch jobs within a year find work they want, compared with just 50% if their break lasts longer than a year.

To counter the trend, the government is rolling out a “first step” program and building a database to locate and assist jobless youth. Officials hope to reach “15-20%” of NEETs and offer tailored support, including virtual workplaces where participants can practice basic job skills and reconnect with society.