Korean youth job losses deepen growing debt crisis

In September, employment among people in their 20s fell by nearly 150,000 year-on-year, marking the 36th consecutive month of decline. Rising job insecurity has pushed loan delinquency rates among 20-somethings to the highest of any age group. Increasingly, young adults are struggling with debt before fully entering the workforce.

The National Data Office reported on Oct. 17 that last month, 3,435,000 people in their 20s were employed, down 146,000 from the same period a year earlier. Their employment rate dropped 0.2 percentage points to 60.7 percent, the only age group to see a decline. By contrast, the overall employment rate reached 63.7 percent, the highest September level on record.

The youth employment slump reflects a prolonged domestic economic downturn that has reduced quality jobs in manufacturing and construction. Those unable to find work struggle to repay loan principal and interest. According to the “Household Loan Status by Age” report from five major banks (KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup), the household loan delinquency rate for 20-somethings stood at 0.41 percent in June, the highest among all age groups.

Last month, 399,000 people in their 20s were neither employed nor seeking work, classified as “inactive.” Although slightly below the 416,000 recorded a year earlier, it is the third-highest September total on record.


강우석기자 wskang@donga.com