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Entry, mid-level white-collar jobs disappear as AI takes on the grunt work

Published: 03 Apr. 2026, 07:00

Office workers are seen in central Seoul on Feb. 19. [NEWS1]

In Korea’s corporate ladder, the middle rung is starting to wobble. Entry and mid-level white-collar jobs are shrinking as companies replace routine tasks with AI.

These entry or mid-level positions, typically held by workers in their 20s and 30s with five to 10 years of experience, have traditionally handled relatively standardized tasks such as data research, coordination, document writing and basic coding. Now, those very functions are among the first to be replaced by AI.

The impact is no longer limited to reduced hiring. As companies restructure and streamline operations, younger workers are increasingly facing pressure to retire voluntarily.

“A high-paid junior developer is often the first target for voluntary retirement,” a human resources representative at a game company said, describing the current reality of the job market.

“The gaming industry doesn’t determine salaries strictly by years of experience,” the representative said. “Voluntary retirement decisions are based more on capability and performance evaluations. A small number of senior developers and designers who lead projects are still difficult to replace with AI, but demand for junior developers has dropped sharply.”

Statistics show the shift is accelerating. A total of 38.2 percent of those involuntarily unemployed in their 20s and 30s — defined as those who left a job within a year — were involuntarily unemployed last year, according to microdata from the Ministry of Data and Statistics analyzed by the JoongAng Ilbo. That marks the highest level since 2021, a year into the outbreak of the Covid-19 pandemic.

Visitors to a job fair held at aT Center in Seocho District, southern Seoul, are seen on March 31. [YONHAP]

A decade earlier, in 2015, the figure stood at 26.9 percent — an increase of 11.3 percentage points. By comparison, the share for those in their 40s and 50s rose only 4.6 percentage points over the same period, from 57.5 percent to 62.1 percent.

“Involuntary unemployment” includes layoffs due to business suspension or closure, early retirement, restructuring and the end of temporary or seasonal jobs — which shows growing job instability among younger workers.

The scale of restructuring is also increasing faster among younger age groups. Among those who became unemployed or economically inactive within a year of leaving a job, the number of people in their 30s who experienced early retirement or layoffs reached 19,412 last year — up 40.2 percent from 13,846 a decade earlier. For those in their 20s, the number rose 26.4 percent, from 15,351 to 19,411.

In contrast, increases for people in their 40s, at 13.1 percent, and in their 50s, at 16.8 percent, were roughly half as large.

“The population of people in their 20s and 30s is shrinking, yet the absolute number of involuntary unemployment is increasing,” said Kim Yoo-bin, a researcher at the Korea Labor Institute. “The sense of job insecurity they feel may be even greater than what the statistics show.”

A notice on signing up for unemployment benefits is seen at an employment support center in Mapo District, western Seoul, on Feb. 11. [NEWS1]

Traditionally, voluntary retirement programs were aimed at workers in their 40s and 50s. But recently, companies have begun expanding them across all age groups — including those in their 30s.

Game developer Krafton introduced a voluntary resignation program late last year with no restrictions on tenure, job category or age. E-commerce platform 11st, which has carried out voluntary retirement programs for three consecutive years since 2023, made employees aged 35 and older with at least five years of employment eligible for the program. Similar trends are seen at LG Household & Health Care, Lotte ON and SSG.com.

“In the past, voluntary retirement was closer to generational replacement aimed at making organizations younger,” said Oh Sung-ho, head of human resources consultancy People Growth Consulting. “Now it has become more about capability replacement. If someone is considered easily replaceable, they can be targeted regardless of age.”

The shift is also reflected in hiring trends. Companies are already tightening hiring in response to AI adoption. In major corporations favored by young job seekers, there is even a reversal underway — with more senior managers than junior-level employees.

Job seekers wait for a meeting with consultants at an employment support center in Mapo District, western Seoul, on Feb. 11. [NEWS1]

The share of employees under 30 at 124 large companies with assets exceeding 2 trillion won ($1.3 billion) fell from 21.9 percent in 2022 to 19.8 percent in 2024, according to Leaders Index.

Over the same period, the share of workers aged 50 and older rose from 19.1 percent to 20.1 percent — surpassing younger workers for the first time since 2015.

At Samsung Electronics, the proportion of employees in their 20s dropped from 30.8 percent to 24.2 percent over the same period. At SK hynix, it fell sharply from 29.6 percent to 14.6 percent. Naver also saw a decline from 25.4 percent to 18.3 percent.

Oh warned that the labor market will become increasingly polarized in the AI era.

“Those who are prepared will receive significant rewards, but those who are not will be pushed out,” he said.

Recent data also shows a growing number of young people exiting the labor market altogether.

Office workers walk across Gwanghwamun Square in Jongno District, central Seoul, on May 20, 2025. [YONHAP]

Last year, the number of people in their 30s classified as "resting" discouraged workers — meaning they are neither employed nor actively seeking jobs without specific reasons such as study or illness — reached a record high of 309,000. Of these, 290,000, or about 90 percent, had previous work experience, suggesting that many entered the work force once but were later let go and stopped job searching altogether.

“A considerable number of people have failed to transition into high-skilled jobs and instead experienced low-quality work or layoffs,” said Yoon Dong-yeol, a professor of business administration at Konkuk University. “As a result, their willingness to participate in the labor market itself is weakening.”

Experts stress that earlier and more proactive support is needed to help young workers adapt to structural changes driven by AI. Retraining after job loss alone is not enough.

“As uncertainty in industry and the economy grows and the labor market becomes more rigid, companies inevitably become more cautious about hiring,” Yoon said. “With limited exit strategies such as layoffs, firms reduce hiring from the outset — and the burden falls on younger workers.”

“Policies should aim to improve both flexibility and stability in the labor market, while also helping mid-sized companies grow into the kind of employers that young people aspire to join,” Yoon said.

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 YEON-JOO, JANG WON-SEOK [[email protected]]