Labor ministry plans 25.1 trillion won job budget, new youth guarantee

The labor ministry said Friday it will spend 25.1 trillion won ($18.7 billion) on state-supported job programs next year, a 2.6 percent increase over this year, as it creates a new scheme aimed at young people struggling to find a first job.

The Ministry of Employment and Labor said the plan, part of a 39 trillion won ($29 billion) budget request submitted to the National Assembly, includes 379 billion won ($283 million) for the K-Youth Guarantee, which will offer career counseling, work experience, vocational training and job placement to 160,000 young people. The job-search subsidy paid to participants will rise to 650,000 won ($484) a month from 600,000 won.

Employment Minister Kim Young-hoon said the strength in semiconductors and exports has not yet reached young people starting out in the workforce.

"Semiconductors and exports are supporting our economy, but the warmth of that growth is not reaching young people's first jobs," Kim said.

The minister said the government is preparing a "people's jobs project" with other ministries to widen opportunities in both the private and public sectors and to channel growth into jobs at supplier companies and in the regions.

Kim's remarks came against a labor market in which overall employment is still expanding while youth employment is slipping. In September, the number of employed people rose by 113,000 from a year earlier and the employment rate for those aged 15 to 64 edged up 0.2 percentage point to 70.6 percent, according to the ministry's September employment report. But the employment rate for people aged 15 to 29 fell 1.1 percentage points to 44.0 percent.

The budget also sets aside 609 billion won ($454 million) for K-Digital Training, with the number of trainees in artificial intelligence courses doubling to 20,000 from 10,000. Kim said the budget would also direct money to first jobs for young people, retraining for mid-career workers moving between industries, and the social safety net for vulnerable groups. The ministry is also reorganizing its youth employment policy office so that hiring and job changes by industry feed into youth programs, with counseling, work experience, training and placement handled as a continuous sequence.

Kim said he would explain the field's needs and the government proposal's intent during next week's budget deliberations at the National Assembly.