AI Automation Drives Sharp Decline in Global Youth Employment

The Bank of Korea reported on August 18, 2026, that artificial intelligence is severely eroding the career ladder for young people in South Korea. Between June 2022 and June 2026, youth employment for those aged 15 to 29 fell by 285,000, with 94 percent of those losses occurring in AI-exposed sectors such as IT services, publishing, and computer programming. IT services saw the steepest decline at 31.4 percent.

This trend highlights a widening generational gap, as employment for workers in their 50s rose by 230,000 during the same period, including 173,000 gains in AI-exposed industries. The central bank noted that the negative impact is most severe when businesses use AI for automation to replace human tasks rather than for augmentation to assist workers. Unemployment rates for university graduates have subsequently risen 1.6 percentage points above those with junior college degrees or less.

Global data from Goldman Sachs indicates this is a broader trend across developed economies, finding that entry-level workers face an employment growth drag from AI more than three times larger than the general workforce. Hiring headwinds are concentrated in software publishing, management consulting, and call centers, with U.S. call-center employment falling 39 percent below historical trends. Similarly, youth unemployment in Britain reached a decade high of 16.4 percent by May 2026.