Job policy, financial support → change direction to employment

Instead of providing cash to jobseekers in the future, the government will change its jobs policy to promote the employment of jobseekers and increase their motivation to work.

Reduce direct government-led job creation projects and strengthen vocational training and employment services to support private sector job creation.

The Ministry of Employment and Labor announced the ‘5th Employment Policy Basic Plan’ at a cabinet meeting chaired by Prime Minister Han Deok-soo today (30th).

The 5th Employment Policy Basic Plan places the vulnerable groups such as youth and women as core policy targets, establishes a future response system such as business and demographic transformation, resolves the mismatch of labor supply and demand, and promotes labor market participation that n focus on services instead of cash support It can be summarized into five main points: establishing an employment security net and strengthening public-private collaboration of labor market policies instead of directly providing jobs.

The Ministry of Labor said, “Until now, our jobs policy has been a choice to avoid the immediate crisis with short-term and temporary prescriptions such as cash assistance and direct job expansion.” There was,” he explained the background of the shift policy.

The Ministry of Labor has found that the original job promotion function of the employment service has weakened as it has focused on financial support over the last few years in the face of the Corona 19 crisis.

Therefore, in order to improve the acceptance and dependence of unemployment benefit beneficiaries (job seeking benefit) repeatedly, measures are taken to reduce the amount of unemployment benefit and extend the waiting period.

We provide tailored re-employment services to job seekers and support their job search activities.

During the first half of this year, we decided to draw up additional system improvement measures to increase the motivation of those receiving unemployment benefits.

Projects with similar or overlapping direct jobs will be consolidated and liquidated, and support to ease the transition to private jobs will be mandated for those repeating direct jobs.

Direct jobs The 48,000 people who took part in the 14 projects are eligible.

The Ministry of Labor has decided to evaluate government-funded job creation projects and terminate the project if the subsidy is reduced three times.

We intend to turn the employment insurance financial balance into a surplus this year by reducing the number of employment incentive projects from 17 to 5 and improving the business employment insurance system.

As the working-age population is expected to decline by 3.57 million by 2030 due to a low birth rate and an aging population, the Ministry of Labor established employment rate targets for all policy targets, including youth, women, and the elderly.

We intend to raise the youth employment rate from 53% in 2021 to 58% in 2027, the female employment rate from 57% to 63%, and the elderly employment rate from 66% to 71%.

The Ministry of Labor and the Ministry of Strategy and Finance will operate a “cross-government jobs taskforce (TF)” and implement an emergency plan if the employment situation worsens.

In order to resolve the discrepancy between labor supply and demand, it was decided to support the rapid employment of simple laborers, who account for 24% of the unfilled labor market, and to help use foreign labor.

The government intends to monitor the process and performance of employment policies through the Public-Private Cooperative Employment Policy Council chaired by the Minister of Labour.

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