SEOUL: South Korea’s young jobseekers are facing the harshest labour market in over 12 years, with the number of employed people in their late 20s dropping even more sharply than during the Covid-19 pandemic.

The downturn – driven by a shrinking economy, a plunge in job openings, and a growing preference for experienced hires – is leaving many young Koreans locked out of work just as they’re trying to launch their careers.

According to Statistics Korea, employment among people aged 25–29 fell by 98,000 in the first quarter of 2025 compared to the same period last year – the largest drop since the third quarter of 2013. It’s also the ninth straight quarter of year-over-year job losses for this age group.

This decline persists even after accounting for the shrinking size of the youth population.

While the number of people in their late 20s fell by around 69,000, the labour force – those working or actively looking for work – dropped by 85,000.

Unemployment rose, with an additional 13,000 young people counted as officially jobless, and the unemployment rate climbing 0.6 percentage point.

One clear sign of the worsening job market: the number of online job postings is in free fall.

The latest data from the Korean Statistical Information Service’s Big Data Nowcast shows that the 4-week moving average of online job listings on JobKorea, a major employment platform, dropped by 57.9 per cent in March 2025 compared to January 2020.

That’s the lowest level since the government began tracking the data in 2020 – and worse than during the height of the pandemic.

The 4-week moving average smooths out week-to-week fluctuations to show the broader trend in hiring activity.

The hiring slowdown cuts across almost every sector. Job ads in business support services have plummeted nearly 90 per cent since 2020. Education is down 50 per cent.

Even manufacturing, a traditionally stable field for young jobseekers, saw postings fall more than 20 per cent.

Employment data echoes the trend: In March alone, South Korea lost 112,000 manufacturing jobs compared to a year earlier – the worst hit in over four years. Construction jobs fared even worse, down a record-breaking 185,000.

Behind this is a broader economic storm. South Korea’s economy has struggled to regain momentum amid the political crisis that emerged late last year, which led to then-President Yoon Suk Yeol being impeached and removed from office over his controversial declaration of martial law.

The chaos rattled investor confidence, froze policy action, and triggered market volatility.

With domestic demand weak and export industries pressured by US trade tensions, businesses are scaling back.

A survey of large firms by the Korea Employers Federation found that only 60.8 per cent plan to recruit new hires this year – down from nearly 67 per cent in 2024 and the lowest since 2022.

“Uncertainty at home and abroad has made companies more risk-averse,” said Lim Young-tae, head of employment policy at the Federation.

“They’re prioritising candidates with experience, which makes it even harder for young people to land their first job.”