Up to 90% Support for Leave and Furlough Pay in 10 Business Sectors Including Travel Industry Facing Management Crisis

2.8 Trillion Won Invested in Emergency Employment Measures
Special Support for Restricted and Prohibited Businesses to be Extended for 3 Months

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will newly support 90% of leave and suspension allowances for 10 business sectors in management crisis, including the travel industry, where sales have decreased by more than 20%. The special support for employment retention subsidies for restricted and prohibited businesses will also be extended for three months. Reflecting the severe employment situation, 275,000 customized jobs for youth, middle-aged, and women will be newly created. To this end, a budget of 2.8 trillion won has been allocated.

According to the '2021 Supplementary Budget (2nd Customized Damage Support Measures)' passed at the Cabinet meeting on the 2nd, the government will invest 203.3 billion won to newly designate workplaces in 10 business sectors in management crisis, including the travel industry, as targets for employment retention subsidies. In addition, the special support for employment retention subsidies, which pays up to 90% of leave and suspension allowances for restricted and prohibited businesses, will be extended for three months. The government expects that 242,000 workers in related industries will benefit. Along with this, 41.7 billion won will be invested to extend the low-interest loan project for leave and suspension allowances at an interest rate of 1.0% for six months.

The government plans to create 275,000 jobs by investing 2.1 trillion won: 140,000 for youth, 58,000 each for middle-aged and women, and 77,000 for women. This includes 4,000 learning assistants for the non-face-to-face era and 7,000 re-employments at indoor sports facilities such as gyms.

However, there are concerns about whether the job creation measures will help the job-seeking activities of the beneficiary groups. In particular, as women's employment is focused on the 'care and education' sector, it seems difficult for unemployed people in their 20s and 30s to receive practical benefits. The government said it would create a total of 17,000 new jobs in this field, including 8,000 child care workers, 5,000 supports for working poor to exit welfare, and 3,000 special school quarantine workers. This strongly targets middle-aged women in vulnerable employment groups.

Professor Yoon Dong-yeol of Konkuk University’s Department of Business Administration said, "Among women's employment, the care-related measures may help those who have found jobs and take parental leave, but it is questionable whether they will help people in their 20s and 30s."

In addition, there are concerns that projects such as re-employment at indoor sports facilities (7,000 people) in the 'culture' sector for youth employment and regional environmental management (12,000 people) including African swine fever (ASF) response in the 'green/environment' sector (29,000 people) for middle-aged employment may produce unskilled and low-income jobs.

Professor Yoon pointed out, "Job policies should be designed not to provide short-term jobs but to lead to career development. This measure seems to be focused on vulnerable employment groups, but it is just an increase in the number of jobs that were provided in the past."

Along with this, the government will provide basic training vouchers for the digitally vulnerable and support employers with 100,000 won per week per worker if they allow telecommuting three or more times a week to promote work-family balance. It also plans to invest 4.1 trillion won in quarantine measures such as COVID-19 vaccine purchase and inoculation, and 50 billion won to expand low-interest loans for living expenses for low-income workers and special-type workers (special employment types).

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