Youth Employment Declines Sharply in AI-Exposed Sectors, Bank of Korea Finds

Since the launch of generative AI chatbots, youth jobs dropped significantly in sectors vulnerable to AI, while employment among older workers increased, a Bank of Korea report reveals.

Editorial Team · Aug 18, 2026 · 2 min read · Source: socialnews.xyz

Youth employment has seen a marked decline in industries most exposed to artificial intelligence technology since the introduction of generative AI tools like ChatGPT in late 2022. According to a report from the Bank of Korea (BOK), the number of jobs held by people aged 15 to 29 fell by 285,000 over a four-year span ending in mid-2026, with nearly all of the losses concentrated in AI-sensitive sectors.

Specifically, sectors such as information technology services, publishing, computer programming, and professional services accounted for 94 percent of the youth employment reduction. Within this period, employment among young workers dropped 31.4 percent in IT services and 27.4 percent in publishing, which includes software and web design roles. Computer programming jobs decreased 16.6 percent, while professional services saw an 11.6 percent decline.

Conversely, employment among workers in their 50s increased by 230,000, with most of that growth—173,000 jobs—occurring within the same AI-exposed sectors. This contrast highlights a shifting labor market dynamic where older workers have gained ground even as younger cohorts face greater challenges.

The report also draws attention to the widening unemployment gap by education level among youth. Before AI’s widespread adoption, from 2019 to 2022, unemployment rates for young people with higher education stood close to those with only secondary or junior college diplomas. However, after 2022, unemployment fell more significantly for less-educated youth, broadening the gap by 1.6 percentage points.

While demographic trends, such as the country’s ongoing population decline, have shaped youth employment patterns, the Bank of Korea attributes an accelerating role to AI technologies in disrupting traditional career paths. A BOK researcher emphasized that although AI increases productivity, it also raises the risk of replacing young workers in certain job categories. The report does not claim AI as the sole cause of declining youth employment but views it as a factor intensifying existing labor market shifts.