At 29, Still Unemployed After Three Years of "Taking a Break"... National Pension at Risk

Record High Proportion of Long-Term Unemployment Among Youth
Delayed Entry into Labor Market Also Impacts Pension Enrollment

As young people in South Korea are entering the labor market at increasingly later ages, prolonged periods of unemployment among the youth are becoming a structural issue. Concerns are growing that extended job searches and unstable first jobs are leading to an increase in the number of young people who are "taking a break" and in the NEET population (a term referring to young people who are Not in Education, Employment, or Training), which could in turn delay their enrollment in the National Pension Scheme.

Students are looking at the job bulletin board at a university in Seoul. Photo by Yonhap News

According to data released by the National Pension Research Institute, as of this year, 18.9% of unemployed youth aged 15 to 29 had not found a job for more than three years. This is the highest figure since such statistics began to be compiled. The proportion has risen by 3.4 percentage points over the past decade, from 15.5% in 2015. This means that about one in five unemployed young people are in long-term unemployment.

Analysts attribute the lengthening job search period among young people to both changes in the labor market structure and shifts in job entry strategies. The domestic university enrollment rate rose from 67.5% in 2015 to 76.3% in 2025, and the average time taken to land a first job is also increasing. The average period for all young people to secure their first job increased from 10.0 months in 2020 to 11.5 months this year. Among those with a university degree or higher, the period lengthened from 7.2 months to 8.8 months over the same period.

The number of young people not participating in economic activities who reported "taking a break" without any specific reason is also rising rapidly. The population of youth in this "taking a break" category increased from 393,000 in 2015 to 590,000 last year. The proportion of non-economically active youth classified as "taking a break" expanded from 6.6% to 12.4% during the same period. Since surpassing 10% in 2020, there has been no clear downward trend.

Young job seekers are attending on-site interviews and consultations at the 2025 Busan Youth Global Employment Fair held last month at Busan City Hall. Photo by Yonhap News

This trend suggests that young people who were previously engaged in studies or job searches are increasingly at risk of exiting both the labor market and education or training, remaining inactive for extended periods. There are concerns that a significant portion of those "taking a break" could transition into NEET status, meaning they are not participating in economic activity or vocational training.

The quality of first jobs is also cited as a factor making it difficult for young people to settle into the labor market. According to analysis by the Korea Employment Information Service, the share of contract-based positions among first jobs for young people rose from 33.0% in 2020 to 37.5% in 2025. The proportion of part-time jobs also increased from 21.0% to 25.0% during the same period.

Wage levels have also fallen short of expectations. As of last year, only 32.0% of respondents reported that their first job paid a monthly average wage of 2 million won (about 1,500 US dollars) or more. The remaining 68.0% earned less than 2 million won per month. Although the average working hours for young people are 94.9% of the all-age average, their total monthly wages amount to just 69.6% of the overall average.

As a result, many young people leave their first job after a relatively short period. The most common reasons for leaving were dissatisfaction with pay and working hours, followed by the expiration of employment contracts.

Among young people "taking a break," the proportion of men was higher at 55.8%, compared to 44.2% for women. The percentage of those remaining in this status for more than two years was also higher among men.

Experts point out that if delays in employment and prolonged periods of "taking a break" among young people continue, the timing of National Pension enrollment will be pushed back, which could ultimately affect the level of income security in old age.