Shaky Sojugseong.. Concerns Over 'Jobless Growth' at Debate

Sojugseong Special Committee to Hold Discussion on "4 Years of Moon Jae-in Government Employment and Wage Trends and Challenges" on the 28th

[Sejong=Asia Economy Reporter Moon Chaeseok] At a forum hosted by the Special Committee on Income-Led Growth, there was a call for active response to the "jobless recovery" after the end of COVID-19. The mainstream view of the Moon Jae-in administration assumes that employment will recover as the economy recovers, but this is considered a complacent judgment. The "jobless recovery" contradicts the theory of "income-led growth," which is based on the idea that increasing the income of low-income groups through the government's expansionary fiscal policies will increase employment and activate household consumption and domestic demand. The Special Committee on Income-Led Growth predicted that a jobless recovery could occur even after the end of COVID-19.

At the forum titled "Employment and Wage Trends and Challenges in the Four Years of the Moon Jae-in Government," held at Post Tower in Jung-gu, Seoul at 2 p.m. on the 28th, voices calling for preparation against the "jobless recovery" were strong.

Kim Yong-gi, Vice Chairman of the Presidential Committee on Jobs, said in his congratulatory speech, "The private sector needs to develop and introduce technologies that increase labor productivity, and employment-friendly research and development (R&D) and employment-friendly tax policies are fundamental solutions to reverse the trend of 'jobless recovery' and 'jobless growth.'"

Professor Hwang Seon-ung of Pukyong National University emphasized the need to prepare for a "jobless recovery" in his presentation titled "Four Years of the Moon Jae-in Administration: Employment Trends and Challenges." (Source: Special Committee on Income-Led Growth)

Concerns about the "jobless recovery" were also raised in the presentations and discussions following the congratulatory speech. Professor Hwang Seon-woong of Pukyong National University, who presented on "Employment Trends and Challenges in the Four Years of the Moon Administration," said, "With automation accelerating due to COVID-19, there is a risk of a 'jobless recovery' after the crisis," and suggested, "We need to promote employment-friendly industrial structure transformation, labor market system improvements, and strengthening of employment safety nets."

Lee Chang-geun, a research fellow at the Democratic Labor Research Institute who participated as a discussant, said, "Since the impact of the COVID-19 pandemic is likely to continue for some time and even if the economy recovers, there is a high possibility of a 'jobless recovery,' we need to shift the crisis response paradigm now to focus on 'employment retention measures for current workers.'"

Analysis data presented by Lee Chang-geun, Research Fellow at the Democratic Labor Research Institute, during the discussion following Professor Hwang's presentation. (Source: Special Committee on Income-Led Growth)

The forum was attended by Lee Jae-gap, Minister of Employment and Labor; Song Ok-joo, Chair of the National Assembly Environment and Labor Committee; and Kim Yoo-sun, Chair of the Special Committee on Income-Led Growth. Minister Lee said, "After the COVID-19 crisis, we will continue efforts to strengthen the foundation for private sector job creation through digital and green New Deals, ensure the smooth implementation of the nationwide employment insurance roadmap, and enhance the employment safety net through the solidification of the National Employment Support System."

Chair Kim said, "Amid ongoing uncertainties caused by COVID-19, difficulties continue for vulnerable groups such as temporary and daily workers, self-employed persons, youth, and the elderly, and structural responses across the economy and society are urgently needed due to the climate crisis, labor market polarization, and the acceleration of the non-face-to-face economy. The Special Committee on Income-Led Growth will continue discussions to address these issues."

Meanwhile, Chair Kim explained that income inequality has somewhat decreased since the launch of the Moon administration. According to Chair Kim, the wage gap between the top and bottom 10% wage earners decreased from 4.35 times in 2016 to 3.64 times last year. The Gini coefficient (where a value closer to 1 indicates greater inequality) dropped from 0.332 to 0.293 during the same period, and the proportion of low-wage workers decreased from 22.6% to 17.4% of the total.

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