[Editorial] No work, no future

It is one of South Korea’s most confounding contradictions: a nation bracing for demographic collapse, yet failing to provide its young people with the jobs they need to build lives, families and futures.

With the presidential election just days away, on June 3, the major candidates remain preoccupied with political brinkmanship — dredging up old scandals and lobbing accusations over peripheral controversies — rather than addressing what may be the country’s most urgent crisis: the hollowing out of its labor market.

The population is aging. The birth rate remains among the world’s lowest. And a growing number of young Koreans, disillusioned by what they see, are opting out altogether.

According to a report from the Korea Employment Information Service, 18.3 percent of Koreans aged 15 to 29 were classified as "NEET" — not in education, employment or training — as of 2022. That ranks third among 11 major member states of the Organization for Economic Cooperation and Development, far exceeding the OECD average of 12.6 percent.

Even more troubling is the trend. While peer nations have succeeded in shrinking their NEET populations since 2014, South Korea’s has continued to rise. This is a symptom of deeper structural malaise, signaling a breakdown in the country’s ability to generate meaningful employment for its young workers.

At the heart of the issue is a persistent mismatch between expectations and opportunity. South Korea produces a highly educated labor force, but the domestic market has failed to generate enough jobs meeting their skills or ambitions. Positions at top-tier conglomerates remain scarce and fiercely competitive.

In their absence, many young Koreans see little point in settling for low-paying roles at small or midsize firms, or for insecure temporary jobs. Faced with that choice, nearly 60 percent of NEETs report a lack of motivation to keep searching. The message they receive from the job market is clear: There is no place for them.

One consequence is a rise in those who say they are “just resting.” These are potential workers who have been sidelined, often involuntarily.

By the third quarter of last year, more than 420,000 Koreans aged 25 to 34 were classified in this category, marking a 25 percent increase from the year before, according to the Bank of Korea. The risks are long-term: Prolonged detachment from the workforce can calcify into chronic unemployment or permanent withdrawal, eroding not only individual prospects but the country’s economic potential.

The deeper concern is the shortage of what are perceived as “decent jobs” — those that are stable, well-compensated and offer a path to advancement. In the pursuit of lower costs, many large firms have offshored production. At home, economic uncertainty has dampened the mood for new investment.

Hiring practices, meanwhile, remain risk-averse and inflexible. Employers often prefer experienced candidates over recent graduates. Employment protections, intended to foster security, have instead discouraged the creation of new permanent roles.

So far, the presidential hopefuls have failed to meaningfully confront these challenges. Their platforms gesture toward job creation, but often in vague or populist terms. Proposals for stipends or slogans offer little in the way of structural reform.

Artificial intelligence is frequently invoked as a growth engine — yet seldom acknowledged as a disruptive force that, according to a joint report by the Bank of Korea and the International Monetary Fund, could make 27 percent of existing jobs obsolete. It is not enough to champion AI investment without a plan to support those it displaces.

Whoever wins next week must come to terms with this reality: South Korea's long-term economic vitality depends on building a labor market that works for its youth. Creating jobs — real, desirable, future-oriented ones — cannot be an afterthought. It must be at the heart of any economic strategy. For without opportunity, there will be no incentive to marry, to raise children, or even to stay. And without its youth, South Korea will have no future.