South Korea is facing a troubling shift in its labor market as more people in their 30s — traditionally seen as the backbone of the nation’s workforce — are stepping away from employment altogether.
According to data released by the National Data Office (formerly Statistics Korea) on November 12, the number of people in their 30s classified as “taking a break” reached 334,000 in October, up 24,000 from a year earlier — the highest figure since records began in 2003.
While the employment rate among people in their 30s rose slightly by 0.3 percentage points year-over-year, experts say the increase in those neither working nor seeking jobs reflects deeper structural problems in South Korea’s labor market.
Analysts point to persistent job mismatches and the slow recovery of key industries such as manufacturing and construction as main factors behind the rise. Many workers in their early and mid-30s — part of the so-called “IMF generation” who entered the job market during periods of economic uncertainty — have struggled to find stable, well-paying jobs. Others have quit after repeated job changes in search of better working conditions, adding to the surge in the inactive population.
The country’s manufacturing sector, which includes flagship export industries like semiconductors, automobiles, and steel, remains sluggish despite booming exports. Manufacturing employment dropped by 51,000 from a year earlier in October, marking the 16th consecutive month of decline.
Even as South Korea’s chip exports hit record highs in the third quarter, job growth has not followed. The Korea Development Institute (KDI) noted that the semiconductor industry’s employment inducement coefficient — the number of jobs created per $1 million in output — stands at just 2.1, about one-third of the manufacturing average of 6.2.
The construction sector is also contracting, with employment down by 123,000 in October — the 18th consecutive month of decline and a steeper drop than September’s 84,000.
Experts warn that the rapid adoption of artificial intelligence (AI) across industries could deepen this “jobless growth,” further squeezing opportunities for younger workers.
“Long periods of inactivity make it harder for people to reenter the workforce, creating a vicious cycle that undermines economic dynamism,” said Kwon Hyuk, a labor economist at Korea University’s Graduate School of Labor Studies. “The government needs to take a more proactive approach by identifying and reengaging those who have left the job market.”
