Youth Job Search Promotion Allowance Raised to 600,000 Won... Government Strengthens Customized Support

[Financial News] The government has set a goal to identify 150,000 long-term unemployed youth annually and provide customized support by type for those categorized as 'resting'. To achieve this, they will add high school graduate and military personnel information to the existing 1.5 million college student-focused employment database (DB).
 Additionally, the government plans to mobilize policies such as promoting unemployment benefits for voluntary resignations, introducing a new youth future savings account, and expanding incentives for the Youth Job Leap Encouragement Grant at an inter-ministerial level.

 On the 10th, the government announced the 'First Step Job Guarantee' at the Government Complex Seoul. This measure comes amid a prolonged decline in youth employment rates for 16 consecutive months. As of August this year, there are 446,000 'resting youth' (youth who have the ability to work but are not actively seeking employment).
 To identify and support 150,000 long-term unemployed youth annually, the government plans to build an inter-ministerial 'Unemployed Youth DB' (Ministry of Employment and Labor, Ministry of Education, Ministry of National Defense). The aim is to expand the existing DB of approximately 1.5 million college students, established by the Ministry of Labor, to include data on high school graduates and military personnel, thereby identifying hidden unemployed youth.
 Based on the DB, those with long periods of unemployment insurance loss or voluntary resignation will be classified as high-risk, while those with long-term employment or training participation experience will be classified as low-risk.
 The government plans to support the identified resting youth by type, such as isolated/reclusive (Ministry of Health and Welfare), career-disconnected (Ministry of Education), and repeatedly escaping (Ministry of Labor), to help them re-enter the workforce. They will also amend the Special Act on Youth Employment Promotion to facilitate the collection of personal information, inter-ministerial information sharing, and service provision.
 A Ministry of Labor official explained, "We are creating a system, platform, and inter-ministerial collaboration framework to approach youth who have long been out of the labor market, similar to Europe."

 The government is also working to create an environment where youth want to work, such as promoting a 4.5-day workweek, while mobilizing policies like supporting regular employment conversion for youth, unemployment benefits for voluntary resignations (limited to once), and youth savings.
 The Ministry of Labor has allocated 27.6 billion won and 6.9 billion won (for 1,500 people) in next year's budget to support the introduction of a 4.5-day workweek and the conversion of temporary, dispatched, and special form workers (special employment) to regular employment, respectively.
 By 2027, the government aims to implement a plan to provide unemployment benefits once in a lifetime to voluntary resigners among the youth. Currently, unemployment benefits are only available to involuntary resigners. 
 Minister Kim Young-hoon stated at the Cabinet meeting the previous day, "Although it is a voluntary resignation, when you look into the details, there are cases of workplace harassment and other issues that youth could not endure, so we will provide job search benefits for one voluntary resignation."
 A Ministry of Labor official commented, "Although the criteria for (providing) benefits differ, most countries operate such systems, and we approached it from that perspective," adding, "It cannot be designed the same as for involuntary resigners. We need to review the employment insurance DB, compare the situations of other countries and Korea, and prepare the system design."
 The current job search promotion allowance of 500,000 won will be increased to 600,000 won next year.
 A new youth future savings account will be established next year to help youth aged 19 to 34 build assets. If a youth deposits up to 500,000 won per month for three years, the government will add a contribution of 6% (general type) or 12% (preferential type) for youth newly employed in small and medium-sized enterprises. 
 The Youth Job Leap Encouragement Grant, which provides up to 4.8 million won for up to two years, will be expanded to all small and medium-sized enterprises in non-metropolitan areas, and areas with declining rural populations will be eligible for incentives of up to 7.2 million won.
 Minister Kim stated, "If youth are frustrated at the starting line of work, the future of our country will inevitably be shaken," adding, "Through the 'First Step Job Guarantee,' the government will ensure that no youth gives up in despair and can grow while being respected in the workplace."


jhyuk@fnnews.com Kim Jun-hyuk Reporter