Both the Number of New Workforce and Jobs Stagnant in Korea, Reports Indicate

Why It Matters

The shortage threatens Korea’s economic growth while the rise in under‑employment among graduates could erode future productivity and consumer spending.

Key Takeaways

• Projected 1.22 M worker shortage by 2023
• Active population growth only 0.46% through 2034
• Industries need 54k workers annually 2024‑2029
• One‑third of graduates consider part‑time work
• 47% cite living expenses as part‑time driver

Pulse Analysis

South Korea’s labor outlook is being reshaped by a demographic cliff that has already reduced birth rates to historic lows. The Korea Employment Information Service projects the economically active population to increase by just 136,000 people between 2024 and 2034, a mere 0.46 percent rise. This sluggish growth, combined with an aging society, means the supply of workers will fall far short of demand, creating an estimated shortfall of 1.22 million workers. Companies across manufacturing, services, and technology will feel the pressure as the gap widens, prompting firms to reconsider automation and AI adoption to offset the shortfall.

At the same time, the supply side is constrained by a generation of graduates unable to secure stable, full‑time employment. A recent Alba Heaven survey revealed that 34 percent of recent university graduates intend to take part‑time work, with 47 percent driven by the need to cover living expenses. The lack of entry‑level opportunities forces many into temporary or gig‑economy roles, suppressing wages and limiting career progression. This under‑employment not only reduces immediate consumer spending but also risks a talent drain as skilled workers seek opportunities abroad or in sectors less affected by the hiring slowdown.

Policymakers are therefore faced with a dual challenge: expanding the labor pool while improving job quality for new entrants. Potential solutions include easing immigration restrictions to attract foreign talent, incentivizing private‑sector upskilling programs, and redesigning social safety nets to support flexible work arrangements without penalizing part‑time earners. Additionally, strategic investment in AI and robotics can complement human labor, but must be paired with reskilling initiatives to prevent displacement. Addressing both the quantitative shortage and the qualitative mismatch will be critical for sustaining Korea’s economic momentum into the 2030s.

Both the number of new workforce and jobs stagnant in Korea, reports indicate

Feb. 13, 2026 · 16:59:38 · By Choi Jeong‑yoon

Growing number of young graduates struggle to get full‑time work, but study suggests significant labor shortage by 2034

A photo shows a crowded unemployment‑benefit certification desk at the employment center in Mapo‑gu, Seoul, on Jan. 11th. (Yonhap)

Government data has suggested a looming labor shortage due to a population cliff in the next decade, but another survey indicated Friday that young workers entering the labor market are struggling to find full‑time jobs.

A medium‑ to long‑term labor supply outlook released by the Korea Employment Information Service indicated South Korea will face shortage of 1.22 million workers by 2023. Even accounting for advances in artificial intelligence that could replace some human labor, the supply of the workforce is projected to fall far short of demand.

The data suggests that the country’s economically active population is expected to reach 29.53 million in 2034 — an increase of only 136,000, or 0.46 percent, compared with 2024. The projected increase is just one‑third of the growth seen over the past decade.

The economically active population includes those aged 15 or older who are employed or actively seeking work. Due to sharply declining births, the inflow of new workers into the labor market is expected to dwindle, with the agency projecting that the growth rate will slow further before turning negative from 2030.

The expected labor gap is forecast to widen as the population ages, with the number of workers needed rising more sharply than the number of workers available.

On average, industries will require 54,000 additional workers a year between 2024 and 2029, and 191,000 a year between 2029 and 2034.

Employment conditions worsen for young workers

While the Korean economy is expected to need more workers, a report indicates that the market is possibly not providing enough jobs for recent graduates.

A survey released Friday by part‑time job platform Alba Heaven shows that 1 in 3 university graduates or soon‑to‑be graduates plans to take on part‑time work after finishing school.

Of the 242 respondents surveyed in February, 34.3 percent said they expect to work part‑time after graduation, compared with just 12 percent who reported having secured or expecting to start a full‑time job.

Another 19.4 percent said they would focus solely on preparing for employment, 14.5 percent planned to search for full‑time work, and 6.2 percent intended to pursue non‑regular positions.

The results highlight a growing reliance on temporary or stopgap work, as stable entry into the labor market becomes more difficult.

Economic pressures play a major role in the shift. Among respondents planning to work part‑time, 47 percent cited the need to cover living expenses or personal spending, followed by 32.5 percent who said they needed money for job‑search preparation. Another 20.5 percent pointed to the difficulty of finding full‑time employment in the current market.

Pay has become the dominant factor in choosing part‑time work, with 43.4 percent listing wages as the top consideration, followed by workplace location (34.9 percent), working hours (31.3 percent) and workload (28.9 percent). The most common target monthly income was between 510,000 and 1 million won.

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Choi Jeong‑yoon (Herald Corp.)