Seoul Warns Youth Joblessness Could Threaten South Korea’s Survival

Seoul, October 2025 – South Korea is raising alarms over the rapid rise of young people disengaged from both work and education, warning that the trend could undermine the nation’s long-term survival. The warning comes from Employment and Labor Minister Kim Young-hoon, who told Nikkei that the growing number of so-called NEETs young people “not in employment, education, or training” poses a grave demographic and economic risk. 

Despite a shrinking youth population, down 13% in the past decade to 8.15 million people aged 15 to 29, the number of NEETs has soared 50% to around 420,000. They now make up 5.2% of South Korea’s youth, the highest level ever recorded. Minister Kim warned that the issue “could lead to the extinction of communities, and by extension, the extinction of the nation itself.”

The reasons for disengagement are complex. Many young Koreans cite burnout, toxic work environments, and unrealistic job requirements. One job seeker described listings demanding qualifications “that are impossible for new people,” while another said working “double shifts wearing dust-proof suits” made staying home seem preferable.

Experts say the country’s “jobless growth” is also to blame. As major companies embrace automation and focus on experienced hires, opportunities for first-time job seekers have shrunk. According to the Bank of Korea, many young workers are now overqualified for available roles, creating a mismatch that fuels frustration and withdrawal.

The economic toll is mounting: rising NEET levels have cost South Korea an estimated 44.5 trillion won ($31.3 billion) over the past five years. Alarmingly, 38% of NEETs hold college degrees or higher, underscoring the inefficiency of the labor market and the disconnect between education and employment.

Time spent out of work also compounds the problem. Data shows that 90% of young people who find new jobs within a year of leaving work secure positions they want but that figure drops to 50% if their employment gap lasts longer than a year.

In response, the government is introducing a “first step” program aimed at re-engaging young people who have fallen out of the workforce. Officials are also building a national database to identify and support jobless youth, with an initial goal of reaching 15–20% of NEETs. Plans include offering virtual workplaces where participants can rebuild confidence, practice job skills, and gradually reconnect with society.

For a country already grappling with declining birth rates, an aging population, and slowing economic growth, South Korea’s youth joblessness is emerging as both a social and existential crisis one that policymakers say must be addressed before the nation’s “lost generation” becomes permanent.