(EDITORIAL from The Korea Herald on Oct. 19)

South Korea's economic growth has left doors closed for its next generation of workers, according to the country's September employment report. While overall employment expanded, young people aged 15 to 29 saw a record decline in employment for the 47th consecutive month. The youth unemployment rate climbed to 5.4 percent, the highest in nine years.

The disconnect between economic growth and employment opportunities for young workers stems from several factors. Employers are favoring experienced workers who require less training, and automation may be reshaping entry-level job requirements. Additionally, rigid pay structures and a divide between secure positions and temporary employment make it difficult for firms to recruit inexperienced workers.

Government policies such as extending the statutory retirement age could exacerbate the problem. While older workers deserve adequate income and longer working lives, these changes may intensify competition for positions sought by younger applicants.

The government must strike a balance between providing temporary relief and promoting high-quality jobs. Cash assistance and publicly funded placements can help young workers through periods of hardship, while tailored training and work experience can improve their job prospects. However, subsidies alone cannot generate sustained demand when businesses lack incentives to expand.

Private-sector growth, particularly in high-value services like technology-enabled business solutions and advanced K-beauty, could create broader job opportunities by leveraging Korea's industrial strength. However, this requires fewer barriers to new services, stronger links between vocational education and employers' needs, and regulatory reforms that enable promising businesses to expand.

The government's nationwide employment initiative will be ineffective if it simply adds more short-lived public work schemes. Meaningful progress requires labor reforms that reduce disincentives to hiring, alongside industrial policies that stimulate private investment and demand in innovative sectors. Ultimately, economic growth that leaves young workers stranded outside the workforce may produce impressive figures, but it comes at the expense of long-term prosperity.