Young Korean workers hit hardest as AI automation slashes jobs – The Korea Times

Young Korean workers hit hardest as AI automation slashes jobs

A job seeker browses a flyer at the 2026 Korea Job Fair at aT Center in southern Seoul, April 28. Korea Times photo by Jung Da-bin

By Park Han-sol

• Published Aug 16, 2026 4:16 PM KST

More than half of the jobs lost by young Koreans in July were concentrated in industries heavily exposed to artificial intelligence (AI). This marks a dramatic departure from previous years, when youth employment dips were primarily driven by slowdowns in traditional manufacturing and in-person services

The latest figures from the Ministry of Data and Statistics reveal that the number of employed individuals aged 15 to 29 fell by more than 191,000 compared to the same period last year. Notably, the information and communications sector, which encompasses computer programming, telecommunications and digital media publishing, bore the brunt of this decline, shedding 74,517 positions. This represents the sector’s steepest single-month drop since comparable tracking began in 2014. Simultaneously, employment in professional, scientific and technical services — covering fields such as legal advice, accounting, corporate consulting, and taxation — contracted by another 23,640 jobs.

Together, these two knowledge-intensive sectors accounted for 51.3 percent of the total youth employment loss. The rapid contraction in these fields signals a major structural shift. While previous economic downturns hit sectors like hospitality, food services and manual manufacturing hardest, the current contraction is striking deep into white-collar domains where entry-level tasks are increasingly automated.

The trend amplifies growing concerns over how the rapid integration of AI tools is transforming the job market for early-career professionals. As companies rapidly deploy generative AI algorithms to handle routine coding, administrative workflows, basic tax preparation and market research, the demand for entry-level workers is shrinking. Industry analysts warn this shift could accelerate a broader “white-collar job apocalypse,” with some projections suggesting that up to half of traditional entry-level office roles could permanently disappear.

A Bank of Korea report highlighted the scale of this vulnerability, estimating that 51 percent of all jobs across Korea face significant exposure to AI adoption. Crucially, the report noted that 27 percent of workers occupy roles categorized as having “high AI exposure and low complementarity.” Workers in these specific roles face the highest immediate risk of displacement or wage stagnation as automation capabilities continue to expand.

Source: www.koreatimes.co.kr