[2021 National Audit] 4 Trillion Won Spent on Youth Additional Employment Incentives, 60% of Recipients Quit Within 3 Years

Comprehensive Audit of the Ministry of Employment by the National Assembly Environment and Labor Committee on the 21st

Minister of Employment and Labor An Kyung-duk (left) and Vice Minister Park Hwa-jin (right) attending the National Assembly Environment and Labor Committee's audit of the Ministry of Employment and Labor held at the National Assembly on the 21st, responding to lawmakers' questions. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] It has been revealed that 60% of young workers left their jobs within three years at workplaces where the government invested about 4 trillion won to expand youth employment.

According to the National Assembly Environment and Labor Committee member Lim Ija of the People Power Party, based on data submitted by the Ministry of Employment and Labor for the national audit on the 21st, the employment retention rate at 6 months for youths hired in 2017, the starting year of the project, at companies receiving the Youth Additional Employment Incentive was 93.2%. However, it sharply dropped to 81.1% in the first year, 56.6% in the second year, and 39.3% in the third year.

By regulation, companies eligible for the incentive must employ youths for at least six months. When companies hire youths, they receive a monthly labor cost subsidy of 750,000 won per person for three years. Since 2017, the budget invested in the Youth Additional Employment Incentive project has reached 4.067 trillion won.

Rep. Lim pointed out, "The employment retention rates of youths hired between 2018 and 2020 are not significantly different from those hired in 2017," adding, "The Youth Additional Employment Incentive project has failed to create long-term jobs that youths hoped for."

Rep. Lim argued that this system appears not to have contributed to the actual activation of youth employment.

The Ministry of Employment and Labor reported that the average number of young workers at 247 companies that received incentives in 2017 was 32.1, and it was similar at 32.2 last year.

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