AI Exposure Linked to Sharp Decline in South Korean Youth Employment

Youth employment in South Korea has fallen sharply in sectors highly exposed to artificial intelligence technology since the emergence of generative AI chatbots, according to a report published Tuesday by the Bank of Korea (BOK). Between June 2022 and June 2026, the number of jobs held by people aged 15 to 29 decreased by 285,000. Approximately 94 percent of that decline, or 268,000 jobs, occurred in AI exposed sectors including information technology services, publishing, computer programming, and professional services.

Specific sectoral declines for youth employment included a 31.4 percent drop in IT services, 27.4 percent in publishing, 16.6 percent in computer programming, and 11.6 percent in professional services. Conversely, employment for people in their 50s rose by 230,000 over the same period, with 173,000 of those gains occurring in AI exposed sectors.

The BOK report also highlighted a widening unemployment gap based on education. From 2019 to 2022, the unemployment rate for young people with undergraduate or graduate degrees was 8.2 percent, compared to 8 percent for those with secondary school or junior college degrees. After 2022, these rates shifted to 7 percent and 5.4 percent, respectively, increasing the gap to 1.6 percentage points.

BOK researcher Oh Sam-il stated that while AI can increase productivity for young people, it also means they can be replaced by the technology. The BOK noted that while population decline may have contributed significantly to these employment changes, the advent of AI may have accelerated the trend. Oh added that AI is accelerating the trend of a diminishing career ladder for young people, though it is not entirely responsible for the reduction in employment.