The Bank of Korea published an issue note examining the rise of Korea’s “Resting” youth, a group of non-employed young people who are neither job seeking nor engaged in education or training. The note says the share of “Resting” people has risen steadily, especially among youth, and highlights a notable increase in those who do not want a job, suggesting a lower likelihood of re-entering the labor market. Using Youth Panel data, it finds that lower educational attainment, lower career adaptability and longer periods of non-employment materially increase the probability that a young person will move into the “Resting” state. The analysis estimates that lower-educated non-employed youth are 6.3 percentage points more likely to be “Resting” than higher-educated peers, while youth with lower career adaptability are 4.6 percentage points more likely to be in that state. Each additional year of non-employment raises the probability of being “Resting” by 4.0 percentage points and reduces the probability of active job seeking by 3.1 percentage points, with stronger effects for those with lower education or lower career adaptability. The note also challenges the view that rising “Resting” youth reflects high job expectations. It finds their average reservation wage is about 31 million KRW, broadly in line with other non-employed youth, and that they show the strongest preference for small and medium-sized enterprises rather than large firms or the public sector. The note points to policy implications rather than regulatory measures. It argues for stronger incentives to help lower-educated youth re-enter the labor market, career counseling to improve planning and adaptability, and institutional improvements to working conditions in SMEs, which account for a large share of youth employment.
Bank of Korea2026-02-09
Bank of Korea issue note finds low education, low career adaptability and prolonged non-employment raise risk of youth becoming resting
The Bank of Korea published an issue note saying Korea’s rising number of “Resting” youth is linked more to labor market entry difficulties than to elevated job expectations. It finds lower education, lower career adaptability and longer non-employment increase the likelihood of becoming “Resting,” while reservation wages remain broadly similar to those of other non-employed youth. The note points to re-entry incentives, career counseling and better SME working conditions as key policy responses.