[Op-Ed] Minimum Wage Hikes Must Also Consider Young People’s Job Opportunities

Raising the minimum wage is often regarded as a policy for young people. But higher hourly pay and preserved opportunities to work are two different issues. What young people need are stable jobs and opportunities to enter the labor market, along with higher hourly wages.

Last July, the Minimum Wage Commission decided next year’s minimum wage at 10,700 won per hour. This is a 3.7% increase from this year, and given the policy goal of stabilizing the lives of low-wage workers and improving their incomes, it is welcome news for young people working part-time jobs.

But not all young people receive the same benefits. Young people whose jobs and working hours are maintained may see their incomes rise, but for those who have not yet found work, it is also important how hiring opportunities may change.

When labor costs rise, businesses and self-employed people may respond in ways that reduce their cost burden. They may cut back on new hiring or reduce working hours, and consider introducing kiosks and automation equipment. In particular, small businesses with low productivity or limited ability to pass costs on through prices may adjust the size of their workforce and working hours.

In its 2018 report, “The Effects of Minimum Wage Increases on Employment,” the Korea Development Institute (KDI) analyzed that firms can respond to minimum wage hikes by adjusting prices, working hours, and allowances. It also concluded that if sharp increases continue, they may lead to reduced employment. Such adjustments can also affect job opportunities for young job seekers who lack experience and skills.

For young people, a first job is not only a means of earning income but also the starting point for gaining experience and building a career. Even if hourly wages rise, if hiring decreases or working hours are shortened, it is difficult to say that young people’s income and opportunities are increasing together.

Of course, it cannot be said with certainty that raising the minimum wage will necessarily lead to reduced employment. Its effects vary by industry, region, and economic conditions. Therefore, when assessing the policy’s effects, it is necessary to look not only at the size of the wage increase but also at changes in hiring levels and working hours.

If it is truly a policy for young people, it must consider both “how much they are paid” and “how much they are able to work.” Policies that raise wages must go hand in hand with policies that create an environment in which businesses can hire more people. That is why deregulation, productivity improvement, and the promotion of entrepreneurship should all be discussed together.

Good jobs are not created simply by setting wage levels by law. Hiring opportunities can also expand when businesses grow and the market gains vitality. For minimum wage policy to meaningfully improve the lives of young people, it must consider both wages and employment. What young people need are higher hourly wages and more opportunities.

Dohee Ko, Intern Researcher, Center for Free Enterprise (CFE)

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Original title: [칼럼] 최저임금 인상, 청년의 일할 기회도 함께 봐야

Author: Do-hee Go

Date: 2026-10-12

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&pn=1&idx=29626