South Korean government zones in on youth joblessness

The government is proposing a budget amount of S$5.1 billion, with the aim of creating more jobs for younger workers.

To combat the high rate of youth joblessness, the South Korean government has announced plans to pump an additional S$5.1 billion into the economy.

Of that amount, S$3.6 billion will come in the form of wage subsidies for small and medium businesses.

Specifically, job applicants aged 15 to 34 will each receive a wage aid of S$22,000 over three years, while existing staff S$14,000 over five years.

The government hopes to lower staff turnover at small and medium companies by closing the wage gap against big corporations. It found that nearly half of workers in their 20s at small businesses quit within a year due to the wage gap.

Youth unemployment has been a persistent problem for the country, with the national unemployment rate hitting an eight-month high of 9.8% in February 2018.

The proposed budget is expected to create between 180,000 and 220,000 jobs, and is aimed at lowering the unemployment rate to 8.0% or lower. 

 

See also: HRM Asia's in-depth report on South Korea's unemployed youth

Click here for more Compensation and Benefits News Click here for more Leadership News Click here for more Recruitment News Click here for more SMEs News Click here for more Talent Management News
Most attractive Hong Kong employers for 2018 revealed
HRM Asia - 24 Apr 2018
These organisations have been voted by jobseekers as the three with the best employer brands.
The benefits of auditing company culture
HRM Asia - 20 Apr 2018
Culture audits can help identify problem areas that need to be fixed, and promote areas that are working well.
New HR roles at McCann Worldgroup, Pan Pacific, and more
HRM Asia - 20 Apr 2018
Here are the latest HR promotions and job moves from across the region.
Petronas named Malaysia’s most attractive employer
Kelvin Ong - 19 Apr 2018
Rounding out the top three are Shell Malaysia and Nestlé.
Flexible dress code every day at PwC
- 16 Apr 2018
Singapore-based employees at the Big Four firm will now have flexible dress code options everyday.
[Two Cents] Compassion's the word
Kelvin Ong - 12 Apr 2018
Layoffs are inevitable in these disruptive times, but they don't have to be ruthless.