The youth generation, by the nature of being in the entry phase of economic activity, inevitably has a weaker economic base compared to other age groups due to an absolute lack of accumulated assets and experience; however, recently, difficulties in the initial job search process and housing aspects are becoming more aggravated than in the past.

Regarding the employment conditions of the current youth generation, looking only at macro statistics such as the labor force participation rate and unemployment rate, it appears to have generally improved since the early to mid-2010s; however, beneath the surface, significant difficulties such as the prolongation of the job search period in the initial stage of labor market entry are inherent. This is due to the deepening of the dual structure of the labor market and the recent decrease in decent jobs caused by the economic slowdown.

If the job search period for youth in the early stages of career development lengthens, they not only lose opportunities for skill acquisition, leading to a failure in proper human capital accumulation, but they also experience problems of weakened employment stability and reduced income throughout their subsequent lives(scarring effect). The analysis results estimated that if the non-employment period is 1 year, the probability of working as a regular employee 5 years later is 66.1%, but if it increases to 3 years, it lowers to 56.2%, and in terms of income, a 1-year increase in past non employment period reduces current real wages by 6.7%.

In terms of housing, the current youth generation also faces a higher housing cost burden compared to the past. The excessive housing cost burden on youth can have negative ripple effects on asset formation, human capital accumulation, and financial soundness throughout their lives. The analysis showed that when housing costs rise by 1%, total assets decrease by 0.04%. Also, when the proportion of housing expenditure rises by 1%p, the proportion of education expenditure fell by 0.18%p, implying that an increase in housing burden can hinder the accumulation of human capital.

In summary, the employment and housing problems of today's youth generation are not just individual problems of the youth but structural problems constraining Korea's growth. Therefore, in terms of employment, mitigating labor market rigidity to improve the dual structure, and in terms of housing, resolving the supply-demand imbalance through the expansion of small housing supply would be the more fundamental solutions. And for the short-term, while expanding work experience support programs to alleviate the problem of youth leaving the labor market, it is also necessary to consider strengthening financial support for minimum housing stability for the youth.