New data shows a 'seniority-based' labour market shift in South Korea
South Korea is experiencing a "seniority-based" labour market shift as jobs for younger people decline amid the implementation of artificial intelligence, according to its central bank.
The Bank of Korea revealed that jobs held by Korean employees between the ages of 15 and 29 went down by 211,000 between July 2022 and July this year, The Korea Times reported.
Among them, 208,000 jobs were from industries that are highly exposed to AI, such as programming, publishing, professional services, and information services.
But jobs for people over 50 years old expanded during the same period, according to the report. They expanded by 209,000 jobs, where roughly 70% are in AI-exposed industries.
"The study indicates that Korea, much like the U.S., is seeing the early signs of transforming into a seniority-biased labour market," the bank said as quoted by The Korea Times.
"Younger workers' roles are declining after AI technologies are introduced, while an increasing number of experienced older workers are aided by them."
Shift in worker demand
The findings come after a previous report from the Leaders Index that revealed the proportion of younger employees at South Korea's largest firms is on a decline.
The index also attributed the shift to AI, which can carry out the work of entry-level employees.
"The trend now is recruiting mid-career professionals or so-called 'experienced rookies,' which naturally raises the average employee age," Park Joo-geun, head of Leaders Index, told The Korea Herald earlier this year.
The Bank of Korea is uncertain whether the decline in youth employment would continue, The Korea Times reported.
It noted that businesses could still nurture young employees who can utilise AI technologies, and that AI-driven productivity gains can still lead to an increase in overall labour demand.
"Discussions on diverse policy measures are needed, including greater support for startups that can utilise AI in ways that help young people explore new growth opportunities," the bank said as quoted by the news outlet.
Losing entry-level jobs
The findings reflect the concerns of many young employees across the world, who worry that AI may be replacing them for entry-level work.
A global poll from the British Standards Institution last month showed 41% of business leaders globally saying AI enabled headcount reductions in their workforce.
In the US, a survey from Resume Templates revealed that 29% of employers have already replaced entry-level employees with AI, while a further 31% are considering it.
