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Frustrated by poor opportunities, more Koreans 'taking a break' from job market

Published: 05 Nov. 2025, 19:04 Updated: 05 Nov. 2025, 19:50

A job seeker looks at a recruitment board during the 2025 Busan Job Festival, an event offering employment opportunities for all age groups, at Bexco in Haeundae District, Busan, on Oct. 27. [SONG BONG-GEUN]

The number of the so-called "resting" discouraged workers in Korea — individuals who aren't studying, managing a household or seeking employment — has reached its highest level since data collection began in 2003, government figures showed Wednesday.

A total of 16.22 million people were classified as economically inactive in August, up 9,000 from a year earlier, according to a supplementary survey on economically inactive and non-salary workers released by the National Data Office. This category refers to individuals aged 15 or older who are not working or actively seeking employment.

Though the share of the economically inactive population fell slightly to 35.4 percent — the lowest since records began in 1999, thanks to increased participation among older workers — the number of people who reported that they were “taking a break” rose to 2.64 million, up 73,000 from last year. That is the largest August figure on record.

Older adults in their 60s made up the biggest share at 951,000, or 36 percent, but younger adults also accounted for a substantial portion.

The number of those in their 30s taking a break increased by 19,000 to 328,000, representing 12.4 percent of the total. Among those in their 20s, the number decreased slightly by 3,000 to 435,000, or 16.5 percent, still the second-largest group after those in their 60s.

A job seeker fills out an application form during a job and startup fair for people with disabilities at Daejeon City Hall in Seo District, Daejeon, on Nov. 4. [YONHAP]

When asked why they were taking a break, many young people said they could not find the kind of job they wanted. Among those aged 15 to 29, 34.1 percent cited “difficulty finding a desirable job,” the most common reason. Among people in their 30s, 27.3 percent gave the same answer, followed by “poor health” at 32 percent. The share of young respondents who cited the lack of desirable jobs rose 3.4 percentage points from a year ago.

Another 9.9 percent of those aged 15 to 29 said they were not working because no jobs were available. Economists say that with companies preferring experienced workers and a limited number of corporate positions that young people want, many are being left out of the labor market.

“In Korea’s rigid labor market, whether you land a good job — such as one at a large company — as your first job can determine your lifetime income and wealth,” said Yang Jun-sok, an economics professor at the Catholic University of Korea. “Policymakers need to help companies create jobs that meet young people’s expectations by easing labor market rigidities,” he added.

The survey also found that 3.30 million people among the economically inactive population hoped to find work or start a business within a year, accounting for 20.4 percent, down 0.3 percentage points from last year.

When asked what mattered most in choosing a job, respondents cited working conditions at 31 percent, income level at 27.5 percent and compatibility with their major or aptitude at 23.8 percent.

Almost half, or 43.6 percent, said they hoped to earn between 2 million and 3 million won (between $1,380 and $2,080) per month, while 27.6 percent aimed for more than 3 million won and 21.7 percent wanted between 1 million and 2 million won.

Job seekers fill out forms at the 2025 Busan Job Festival, an event offering employment opportunities for all age groups, at Bexco in Haeundae District, Busan, on Oct. 27. [SONG BONG-GEUN]

Meanwhile, the number of non-salary workers — including the self-employed and unpaid family workers — fell by 103,000 to 6.554 million, the sharpest drop since August 2020, when the Covid-19 pandemic hit small businesses. Their share among all workers dropped 0.5 percentage points to 22.6 percent, continuing a steady decline from 27.9 percent in 2013.

Both self-employed people with and without employees declined. One-person businesses fell by 65,000 to 4.24 million, and employers with staff decreased by 5,000 to 1.44 million.

Experts say the drop reflects more closures among one-person operations than growth into businesses that hire others. In fact, only 331,000 people started a new business within the past year, down 30,000 from the previous year — the lowest since data collection began. Among them, 73.8 percent said they launched their business because they wanted to “run their own business,” while 17.9 percent said they started a company because they could not find salaried employment, up 1.8 percentage points from last year.

The results suggest that as the job market tightens, more Koreans are turning to self-employment out of necessity rather than opportunity — a trend that has continued for a second straight year.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY AHN HYO-SEONG [[email protected]]