Seoul, January 18 (NationPress) The employment rate for individuals in their 20s experienced a decline in 2025, marking the first downturn in five years, as a shrinking population and a weakened job market impacted hiring, according to data released on Sunday.

In 2025, the employment rate for this age group was recorded at 60.2 percent, reflecting a decrease of 0.8 percentage points compared to the previous year, as per the Ministry of Data and Statistics. This was the first annual drop since 2020, when hiring took a hit due to the COVID-19 pandemic, as reported by Yonhap news agency.

Last year, the total number of employed individuals in their 20s stood at 3.44 million, which is a decrease of 170,000 from the previous year. This trend has persisted for three consecutive years, with the decline accelerating from 82,000 in 2023 to 124,000 in 2024.

The ongoing population decline has been identified as a significant factor, with the number of young individuals in this age group falling for five straight years since 2021.

However, the drop in employment among youths has been more pronounced than the population reduction, indicating a broader weakness in the labor market.

"In earlier years, many young people found jobs in their 20s, but there’s a growing trend of individuals waiting until their 30s to seek better opportunities," stated Yang Jun-seok, an economics professor at the Catholic University of Korea.

Additional data from the ministry revealed that jobs within large conglomerates amounted to 4.43 million in 2024, representing an increase of 17,000 from the previous year.

Nonetheless, the proportion of positions held by the same employees rose by 0.8 percentage points to 84.4 percent, suggesting limited mobility in the job market.

In the meantime, President Lee Jae Myung indicated that the growing polarization in the country's economic landscape is disproportionately impacting the youth, posing a threat to the nation's future.

Lee made these comments during an economic growth strategy meeting at Cheong Wa Dae, noting that the nation's K-shaped economy—characterized by uneven recovery where some sectors grow rapidly while others decline—represents a significant challenge.

"Despite indicators suggesting that our economy will improve compared to last year, it is likely that the majority will not experience this change," he remarked.

"The burden of our K-shaped growth primarily falls on the younger generations, who are essential to our future," he added. "This issue transcends youth concerns and threatens the future growth engines of South Korea's economy."

Lee expressed concern that over 400,000 young individuals have been excluded from the labor market, with no accountability for the lack of entry-level positions.