[fn Editorial] Large Corporations Announce Massive Hiring, Offering Relief to Youth Unemployment

Large corporations announced massive new hiring plans on the 18th. Samsung announced that it will hire 60,000 people in key industries such as semiconductors, artificial intelligence (AI), and bio over the next five years. Hyundai Motor plans to expand hiring to 10,000 next year, and SK Group plans to increase this year's hiring to 8,000 by hiring an additional 4,000 people, equivalent to the first half, by the end of the year. Hanwha plans to hire 3,500 people in the second half, 1,400 more than the first half, and POSCO plans to hire 15,000 people over five years.

It is unusual for large corporations to simultaneously announce massive hiring plans, and the scale of hiring is the largest in recent years. In a situation where youth unemployment has emerged as a serious social issue, it is welcome news like rain after a drought that large corporations are rolling up their sleeves to hire. It is desirable for large corporations, which are relatively better off in difficult economic conditions, to take the lead in providing jobs for young people.

Youth unemployment is at its worst. More than 500,000 young people have lost their motivation to find jobs and are just resting. The number of those 'just resting' and 'preparing for employment' has exceeded 1.2 million. If you spend years unable to find a job after graduating from school, your life plans can go awry. Although there are not many places with age restrictions, the longer you miss the employment period, the harder it becomes to find a job. Youth unemployment does not end with unemployment but leads to a decline in marriage and birth rates. Moreover, if young people who cannot find jobs accumulate, it becomes a social issue with an increase in reclusive individuals and is not unrelated to an increase in crime.

In Korea, where the university entrance rate is the highest in the world, the desired job level is also high. Naturally, they prefer employment in large corporations with relatively better salaries and welfare benefits than small and medium-sized enterprises with lower treatment. Therefore, some small and medium-sized enterprises experience recruitment difficulties, but youth unemployment increases, resulting in a 'mismatch'. From a national perspective, even a slight increase in hiring by large corporations will significantly help alleviate youth unemployment.

However, it is not without suspicion that the simultaneous announcement by large corporations is not an 'unwilling Chunhyang' at the government's request. The hiring announcement by large corporations came two days after President Lee Jae-myung said at a cabinet meeting on the 16th, "To solve the youth employment problem, efforts from both the government and companies are needed."

It is undoubtedly a good thing that large corporations responded to the government's hiring hopes. I believe they set the hiring scale in a way that does not place a significant burden on the company's finances. Companies face another burden and task of extending the retirement age, in addition to youth hiring. It cannot help but be a pressure on management.

To solve the two issues of expanding youth hiring and extending the retirement age, which increases the total number of employees, the concession of existing employees is necessary. Especially if strong unions continue to demand excessive wage increases and bonuses, it will be difficult for any company, no matter how much money they make, to endure. Unions should know that vested interests and selfishness, thinking only of their own well-being, can be harmful to business operations.

Even if large corporations reluctantly increased the number of hires at the government's request, they must keep this promise. Although there is no penalty for not keeping the promise, they should ensure that the promise does not become vague, thinking that all young people are watching. If you nurture talent during difficult times, you can demonstrate high competitiveness when the economy improves.