[Exclusive] With No Solution for Youth Employment... 75% of Job Search Allowance Recipients Are Young People

As the youth employment market faces both deepening and prolonged stagnation, demand for the Job Search Promotion Allowance among young people (ages 15–34) is surging. Last year, three out of four recipients of the allowance were in this age group. With the monthly allowance set to increase to 600,000 won (from the current 500,000 won) next year, competition for these benefits is expected to intensify.

According to the Ministry of Employment and Labor (MOEL) on the 13th, young people accounted for 75% of Type 1 National Employment Support System (NESS) recipients last year. The NESS is divided into Type 1 and Type 2, with Type 1 primarily focused on the Job Search Promotion Allowance.
The NESS was introduced in 2021 to support job-seeking activities and provide livelihood assistance to vulnerable groups, such as low-income job seekers and long-term unemployed individuals with little or no employment insurance history. Of these programs, the Job Search Promotion Allowance is the largest cash support initiative, providing 500,000 won per month for six months, plus an additional 100,000 won per dependent (up to a maximum of 400,000 won per month).
Analysts say that the high demand for the Job Search Promotion Allowance among young people is largely because most are new to the workforce and the prolonged downturn in youth employment has exacerbated the situation.
As of August this year, the number of employed young people fell by 219,000 compared to the same month last year. This marks 16 consecutive months of decline since May last year. The decrease in August is two to five times greater than that seen among those in their 40s (73,000) and 50s (38,000). The number of people in their 30s who reported 'taking a break' reached a record high of 328,000, and the total number of young people taking a break remains above 400,000.
The number of employment insurance subscribers is also declining. Subscribers under age 29 peaked in 2022 and have decreased every year since. As of August this year, there were 2.29 million, down about 330,000 from the same month in 2022.
A MOEL official stated, “The Job Search Promotion Allowance is one of the most frequently mentioned programs by young people through civil complaints and other channels. While the special youth eligibility requirements play a role, the proportion of young recipients is high even under other conditions.”



In response to these trends, MOEL has included the NESS under the Youth Employment category in next year’s budget proposal. The Yoon Suk Yeol administration’s ongoing budget cuts will also be eased. Starting next year, the Job Search Promotion Allowance will increase from 500,000 to 600,000 won per month, with further phased increases under consideration.
The increase in the Job Search Promotion Allowance will apply to all age groups, not just young people. The principle of prioritizing low-income job seekers through income and asset screening will remain unchanged. A MOEL official explained, “Although demand among young people is high, it would not be appropriate to exclude the remaining 25% of middle-aged and older recipients, so the increase will apply equally to all Type 1 beneficiaries.”
Meanwhile, according to MOEL, demand for the NESS continues to rise. With the increase in the Job Search Promotion Allowance next year, competition for benefits is expected to become even fiercer. A MOEL official noted, “Since last year, the number of recipients has begun to exceed the budget, and this year, there have been many cases where applicants have been rejected.”
jhyuk@fnnews.com Kim Jun-hyuk Reporter