South Korea Cuts 2026 Job Forecast to 150,000 as Youth Unemployment Climbs to 7.0%
Updated
Updated · The Korea Herald · Aug 2
South Korea Cuts 2026 Job Forecast to 150,000 as Youth Unemployment Climbs to 7.0%
1 articles · Updated · The Korea Herald · Aug 2
Summary
150,000 jobs is now South Korea’s official 2026 employment forecast, down from 160,000 and below last year’s 190,000 increase, even after the government raised its GDP growth outlook to 3.0% from 2.0%.
June data showed why the downgrade landed heavily on younger workers: total employment rose 63,000 and overall unemployment held at 2.8%, but the 15-29 employment rate fell 1.7 points to 43.9% while youth unemployment rose 0.9 point to 7.0%.
Hiring conditions have worsened as large companies cut new graduate recruitment by 30%-40% and under-30 employment insurance enrollment keeps falling, reinforcing officials’ view that AI is eroding entry-level hiring.
The government plans a third-quarter youth package with training in advanced industries and more than 200,000 jobs, while also weighing public support for young workers’ first two or three years of experience.
The weak market response to the upgraded growth forecast underscored broader doubts that cash-heavy stimulus and short-term labor programs can fix South Korea’s deeper youth employment problem.