Low Birthrate and Population Decline Focus on 'Maintaining Female Employment'... Tax Support and Expanded Childcare

Tax Incentives for Companies Employing Gyeongdannyeo Eased to Over 2 Years of Career Interruption
Expansion of Care Institutions, Extended Operating Hours, Increased Support for Vulnerable Care Groups
Promotion of Human Rights Protection and Labor Environment Improvement in Female-Dominated Sectors Such as Nursing and Housekeeping

[Asia Economy Reporter Han Jinju] The government is shifting its paradigm on women's employment policy from 'reemployment' to 'employment retention' in preparation for the decline in labor supply in the era of low birth rates. To maintain and expand women's employment, the government will extend care service operating hours and relax tax credit support requirements for companies employing women with career interruptions.

On the 28th, the Ministry of Gender Equality and Family announced tasks to maintain women's careers, alleviate career interruptions, and prepare for family diversification and member reduction through an inter-ministerial population policy task force involving 11 ministries including the Ministry of Education and the Ministry of Employment and Labor at the Social Relations Ministers' Meeting.

Due to COVID-19, the number of employed women decreased by 137,000 to 11.523 million, a much larger drop than the 82,000 decrease in employed men (15.321 million). Employment among women in their 30s and 50s has turned downward, and increases in women's employment rates and female manager ratios have slowed. Among reasons for women's career interruptions, 'childcare' accounts for the largest share, and since COVID-19, the top reason for women with children leaving their jobs has been care-related issues.

Trends in the Number of Employed Women in Their 30s, 40s, and 50s (Source: Ministry of Gender Equality and Family)

Reasons for Career Interruption Among Women from 2014 to 2019 (Source: Statistics Korea)

The Ministry of Gender Equality and Family will also relax the tax credit support requirements for companies employing women with career interruptions. The career interruption period will be eased from three years or more after resignation to two years or more. The scale of vocational training support for promising occupations for women with career interruptions will expand from 2,600 people this year to 2,800 next year. The government will supply 2.5 trillion KRW in growth funds guaranteed for women-owned businesses by 2024 and is considering developing an integrated support program to promote women youth's entry into STEM fields.

To spread a work-life balance culture and reduce gender gaps in the labor market, the government will strengthen human rights protections in female-majority industries and analyze companies' gender equality status. To maintain employment of women currently working, customized support models related to counseling, consulting, and care?such as industry-specific and general models?will be developed within the year. Detailed guidelines to establish relief procedures within the Labor Relations Commission for employer actions related to employment discrimination or workplace sexual harassment will be prepared and implemented from May next year.

The criteria for family-friendly certification for companies will add 'causing significant social controversy.' Companies found to have committed discriminatory acts such as employment or education discrimination and sexual harassment, which constitute human rights violations, will face certification cancellation or exclusion. To improve labor environments in female-majority industries, in-depth training on human rights violation prevention and response manuals will be provided for nursing staff and others. Subordinate laws will be prepared before the enforcement of the 'Domestic Workers Act' to improve treatment of domestic workers. The number of 'gender-separated' items in corporate or institutional management disclosures will increase, analyzing and publishing gender-based executive ratios in listed companies and gender wage gaps in listed companies and public institutions. A comprehensive framework for gender equality status disclosure will be established by next year.

Care service provision hours will also be expanded. The operating hours of Dahamkke Care Centers will be extended to mornings and evenings, and regional children's centers and youth after-school academies will operate on weekends. The 'Childcare Service' visiting homes will expand its support groups to include single-parent families, children with disabilities, youth parents, and families at risk of child abuse. From next year, the government’s 24-hour care one-stop service on Government24 will allow applications and assignments for school care centers and community-based care programs, and the system will be improved to enable care service applications by time slot and project. In the mid to long term, to cover blind spots in public care services, plans to strengthen the management system for private childcare services will be pursued. While maximizing private sector autonomy, the government will specify directions through surveys.

Changes in How to Indicate the Relationship with the Head of Household on Resident Registration for Remarried Families (Data=Ministry of Gender Equality and Family)

In response to the diversification of family types due to increases in single-person households such as single-parent and remarried families, efforts will also focus on eliminating discrimination. From next year, residents will be able to choose whether to indicate relationships with the head of household for remarried families on resident registration from the current 'stepfather, stepmother, spouse's child' to 'father, mother, child.' The government will identify the status of marriage immigrants who do not receive benefits under the Basic Livelihood Security Act and seek improvement measures by 2022.

To prevent loneliness and isolation among single-person households, from 2022, support will be provided for social network formation such as self-help groups for single-person households, along with strengthened mental health counseling. Surveys and basic plan establishment to prevent solitary deaths among single-person households will also be promoted. Considering the expenditure realities of 1-2 person households, the government plans to reform the system by raising income criteria for basic livelihood security eligibility. To support young and elderly single-person households, plans include supplying 243,000 youth housing units and 52,000 elderly rental housing units by 2025.

Jeong Young-ae, Minister of Gender Equality and Family, said, "This measure has been prepared through consultations among related ministries since January this year to respond to changes in population structure such as labor supply decline, women's employment crisis, and family diversification. We will strive to contribute to alleviating the low birth rate phenomenon by strengthening women's career retention and employment in response to labor supply decline, improving the quality of life for diverse families including single-person households, and reducing childcare burdens."

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