New hires among workers in their 20s and 30s hit record low as youth job market tightens

New wage-employment positions for workers in their 20s and 30s fell for the fourth consecutive year in the first quarter of this year, hitting the smallest number on record. A simultaneous drop in earned income has left young workers facing a double burden of a hiring freeze and shrinking paychecks.

According to the Korean Statistical Information Service (KOSIS), new hires among salaried workers in their 20s and younger and those in their 30s totaled about 2.363 million in the first quarter of this year, down 23,000 from the same period last year.

The figure has declined for four consecutive years on a first-quarter basis since 2023, marking the lowest level since the statistics were first compiled in 2018.

New hire positions include both replacement jobs — vacancies created when existing workers retire or change jobs — and newly created positions resulting from the establishment of new businesses or the expansion of existing ones.

By age group, the hiring slump was most pronounced among workers in their 20s and younger, who are entering the workforce for the first time. New hires in that group fell by 26,000 from a year earlier to about 1.343 million, the lowest since records began.

By industry, manufacturing accounted for the bulk of the overall decline, with new hires in that sector falling by 24,000.

Analysts attributed the drop to a combination of factors: a structural decline in the population of that age group, weakening hiring demand in manufacturing and some other industries, and a growing corporate preference for experienced workers and rolling recruitment over mass hiring.

New hires among workers in their 30s edged up by 3,000 from a year earlier to about 1.02 million, ending two consecutive years of decline — though the increase was marginal. The total was comparable to the first quarter of 2021 (about 1.011 million), when the impact of COVID-19 was at its most severe.

As job-search periods have lengthened in recent years, more people are landing their first jobs in their 30s rather than their 20s. But new hires in that age group have not grown significantly either, leaving limited openings for new entrants, analysts said.

Even those in their 20s and 30s who have found work are seeing their earnings erode. According to the household income and expenditure survey for the second quarter of this year, nominal earned income for worker households headed by someone aged 39 or younger fell 0.3 percent from the same quarter a year earlier.

It was the only age group to post a decline, extending a streak of two consecutive quarters of falling income following a 1.0 percent decrease in the first quarter.

The declines came even as consumer prices rose 2.1 percent and 3.0 percent year-on-year in the first and second quarters, respectively, meaning real wages for young workers moved further into negative territory.

Average earned income for all worker households rose 0.7 percent in the second quarter. Workers in their 40s saw a 1.6 percent increase, while those in their 50s and those aged 60 and older posted gains of 2.9 percent and 2.4 percent, respectively.

Analysts said a contraction in the labor market — partly driven by the war in the Middle East and other external factors — along with slowing wage growth, is hitting younger workers particularly hard.

Employment data showed the number of employed people aged 15 to 29 fell by 191,000 in July, extending a streak of decline to 45 consecutive months. The youth employment rate dropped 1.6 percentage points to 44.2 percent, falling for the 27th straight month.

The government has mobilized efforts to boost youth employment, operating a matching platform that supports job seekers through the entire process — from job hunting and placement to career development and advancement — while connecting them with employers.

To help young workers build assets after finding employment, the government also plans to provide financial support for young people working at small and medium-sized enterprises in regional areas.

However, critics argue that piecemeal measures such as matching services and subsidies cannot address the root causes of the problem amid structural shifts — including job displacement driven by AI and a sustained contraction in new hiring.