Government moves to restore youth employment with AI education, hiring support

The government has begun drafting a plan tentatively titled the "Youth Employment Recovery Plan" to address the deepening youth jobs crisis. The plan will focus on strengthening job-seeking skills through AI and other advanced-field education, expanding companies' new hiring of young workers, and rolling out tailored measures for sectors with weak employment, including manufacturing and construction.

First Vice Finance Minister Lee Hyeong-il and Employment and Labor Vice Minister Kwon Chang-jun convened a joint interministerial job task force Tuesday at the Government Seoul Building to discuss additional measures for youth employment and review employment trends and response strategies by sector, according to the Ministry of Economy and Finance and the Ministry of Employment and Labor.

The government assessed that livelihoods and employment conditions have become increasingly difficult as persistent weakness in youth employment has been compounded by growing external uncertainty. In response, it said it would closely analyze the employment situation — focusing on struggling sectors such as manufacturing, construction and agriculture, as well as vulnerable groups including youth — and develop countermeasures.

As an immediate step, the government plans to swiftly implement existing tasks under the Youth New Deal initiative and expand programs that have shown strong demand and proven results. It is also reviewing ways to boost young people's job-seeking capabilities through AI and advanced-field education and link that training directly to actual employment. Additional support measures to encourage companies to hire more young workers will also be identified.

Sector-specific responses will be strengthened as well. The government said it would actively identify and address on-the-ground obstacles in industries with weak employment, such as manufacturing and construction, and mobilize all available policy tools. Related measures are to be announced sequentially as part of sector-specific plans, including the forthcoming Youth Employment Recovery Plan.

The push comes as the youth labor market has been deteriorating rapidly. According to the Ministry of Statistics, the number of employed young people aged 15 to 29 fell by 255,000 in May compared with the same month a year earlier, and the youth employment rate dropped 2.4 percentage points to 43.8 percent. The youth employment rate has now fallen for 25 consecutive months.