As young people struggle with a severe job market, youth employment has emerged as the most critical issue for economic and employment policies in the second half of the year.
In fact, it has been reported that a data analysis small and medium-sized enterprise (SME) in Seoul with 60 employees received 1,800 applications for one or two administrative positions, which offered an annual salary of 40 million won.
With competition ratios reaching hundreds to one for any decent job, young people are expressing their frustration, calling it a "crazed job market."
The younger generation is facing a "triple whammy": a shrinking number of jobs, wages concentrated in a few large corporations, and a blocked ladder for upward mobility.
According to the Korea Development Institute (KDI), the employment elasticity—which measures the growth rate of employed persons relative to economic growth—has fallen to 0.24, the lowest level in eight years.
In short, this means that while the economy is growing, the number of jobs is not increasing at the same pace.
The impact of this job decline is concentrated more heavily on the youth.
The 15–29 age group was the only demographic to see a decline in the number of employed persons for five consecutive months this year.
In particular, jobs at large corporations, which are preferred by young people, have decreased significantly.
Last year, the number of employees at the four major conglomerates—Samsung, SK, Hyundai Motor, and LG—which account for 40% of employment at domestic large corporations, decreased by 12,300 over the course of one year.
This means that the doors to high-quality jobs that young people aspire to enter are becoming even narrower.
Furthermore, the wage gap between large corporations and SMEs remains significant, and the disparity is widening to a level that is difficult to bridge.
According to the Korea Institute for Industrial Economics & Trade (KIET), as of 2024, the average monthly wage for employees at large corporations was 6.13 million won, which is double the 3.07 million won earned by SME employees.
In particular, citing the performance-based bonus distribution process in the semiconductor industry, such as at Samsung Electronics and SK Hynix, KIET analyzed that as the nominal wage gap between large corporations and SMEs continues to widen, the ability to secure a position at a large corporation is becoming increasingly important for young people.
KIET estimated that "even by simply calculating the average wage difference by age group from 25 to 49, those who start their careers at large corporations can secure an advantage of approximately 1 billion won in wage income compared to those who start at SMEs."
Ultimately, experts point out that youth employment policy must shift from simply increasing the number of employed people to improving the quality of their first jobs.
Reported by Jung Da-eun | Video by Lee Ui-seon | Graphics by Lee Jeong-ju | Produced by SBS Digital News
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.