A recent report by the Korea Labor Research Institute has highlighted a notable decrease in youth hiring—particularly among the 15-29 age group—following the commercialization of generative AI technologies such as ChatGPT. This decrease in employment is attributed to the introduction of AI not necessarily replacing existing personnel but rather leading to a reduction in new hires, negatively affecting the job prospects of young individuals entering the labor market. The report analyzed employment insurance database records combined with workplace information, revealing a clear trend over the past two years.

Specifically, the employment rate for youth in AI-adopting companies significantly declined between November 2022 and the end of 2024. When the youth employment rate was normalized to 100 in November 2022, it is projected to fall to between 92 and 93 among AI-adopting firms by 2024. In contrast, companies that did not implement AI saw their youth employment rates decrease to 97-98 within the same period. This trend indicates that firms utilizing AI are more cautious in hiring young employees compared to those that have not.

The report also noted that while there were minimal differences in employment trends for middle-aged and elderly workers between AI adopting and non-adopting companies, the impact on youth employment was pronounced. Roles subject to automation—where AI can potentially replace human tasks—suffered the most significant job losses for young individuals, whereas jobs focused on augmentation—where AI complements human capability—showed resilience against the influences of AI adoption. The findings suggest that the rise of generative AI could be fundamentally altering hiring patterns, with significant implications for the future workforce of younger generations.