Private Sector Jobs Planned at 160,000 Through Supplementary Budget, Achieving Only 10% of Target

Job Committee to Announce '3rd Supplementary Budget Job Project Progress' on 28th
61% Achieved of 575,000 Public and Private Job Targets
Youth Digital and Work Experience Private Wage Support...Underwhelming Results

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The performance of the project to create 160,000 private sector jobs using the 3rd supplementary budget (supplementary budget) was only 10% of the target. More than 1 trillion won of the budget is expected to remain unused and be forfeited within this year.

The Presidential Committee on Jobs held its 17th meeting at the Korea Press Center on the morning of the 28th and announced the 'Status of the 3rd supplementary budget job project.'

Earlier, the government declared that it would create 575,000 public and youth jobs with the 3rd supplementary budget confirmed in July. However, according to the Jobs Committee announcement, as of this month, actual hiring was only 61.5% (354,000) of the 575,000 jobs.

The supplementary budget job projects are divided into public and private sectors. The situation is more serious in the private sector job projects. The plan was to create a total of 160,000 jobs by supporting labor costs for private companies, such as 60,000 youth digital jobs and 50,000 youth work experience support projects, but actual hiring was a meager 11% (18,000 people).

The Youth Digital Job project supports companies that hire youth in information technology (IT) related positions with up to 1.8 million won per month in labor costs and 100,000 won in indirect labor costs. The Youth Work Experience Support project supports companies that hire youth short-term to provide work experience opportunities with up to 800,000 won per month in labor costs and 10% management fees.

According to the Jobs Committee, public jobs have completed hiring 80.9% (336,000) of the target 415,000.

The supplementary budget allocated about 2.3 trillion won to public job projects and 1.6 trillion won to private job projects. The supplementary budget must be executed within this year. More than 1 trillion won of the budget is expected to remain unused and be forfeited.

The Jobs Committee explained, "Although a total of 98,000 people in the private sector expressed willingness to participate, actual hiring remains in the 10% range due to the contraction of new hiring caused by COVID-19."

They added, "We will strengthen monitoring and execution management of the supplementary budget job projects in cooperation with the relevant ministries," and "We plan to actively promote job placement, hiring encouragement, on-site inspections, and various system improvements."

This content was produced with the assistance of AI translation services.