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20-somethings see slowest real income growth over past decade

Published: 29 Sep. 2025, 16:35

Job seekers wait for on-site interviews and employment consultations at a job fair held at Dongdaemun Design Plaza in Jung District, central Seoul, on Aug. 20. [YONHAP]

People in their 20s saw the slowest growth in real income over the past decade, according to a new report, amid worsening job quality and increasing living costs despite improved employment figures.

In an analysis released Monday with a title roughly translated to Trends in Real Income by Generation, 2014–2024, the Federation of Korean Industries (FKI) said that real income for people in that demographic grew at an average annual rate of just 1.9 percent — the lowest among all age groups.

By comparison, the growth rates were 2.1 percent for those in their 40s, 2.2 percent for those in their 50s, 3.1 percent for those in their 30s and 5.2 percent for those aged 60 and older.

The report noted that the real income growth rate for people in their 20s halved from 2.6 percent annually between 2014 and 2019 to just 1.1 percent between 2019 and 2024. All other age groups outpaced them during the same period, widening the gap.

The primary reasons for the weak growth in real income among young adults were worsening job quality and a sharp rise in perceived inflation.

Even in terms of nominal income — mostly based on wages — those in their 20s posted an annual average growth of 4 percent, trailing behind those in their 30s, who had 5.3 percent annual average growth, and those in their 40s and 50s, who saw growth of 4.3 percent, respectively. In contrast, people aged 60 and older, who typically rely more on pensions and other benefits, saw a 7.3 percent rise.

Youth employment indicators have improved quantitatively over the past 10 years. The youth unemployment rate fell from 9 percent in 2014 to 5.8 percent in 2024, and the employment rate climbed from 57.4 percent to 61 percent.

Job seekers and university students are seen at a job fair held at Busan City Hall in Busan on Aug. 26. [SONG BONG-GEUN]

However, the share of nonregular workers in this age group soared from 32 percent in 2014 to 43.1 percent in 2024, indicating that job quality — including wages and working conditions — has deteriorated despite more jobs being available.

The rising cost of living has also strained young people’s finances. Food and accommodation — the biggest spending category for young adults — rose at an average rate of 4 percent annually over the past five years, putting further pressure on living expenses.

The perceived inflation rate among young people more than doubled, rising from 1.1 percent between 2014 and 2019 to 2.8 percent between 2019 and 2024.

“The increase in dining-out expenses, which account for 30.9 percent of youth spending, has become a direct burden on budgets,” the FKI report said.

To address the issue, the institute called for urgent reforms in labor market policies to improve job quality and stabilize restaurant prices.

“Policies to strengthen employment training and create high-quality jobs are essential to bolstering young people’s income base,” an FKI representative said. “Efforts must also be made to reduce input costs for food in order to curb rising restaurant prices.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]