[Second Half Economic Policy] Labor Mismatch Must Be Resolved... Increase Support and Enhance Training

2023 Second Half Economic Policy Direction
Construction and Fisheries Added to Support Sectors for Vacant Jobs
Establish and Advance the 4th Basic Plan for Vocational Competency Development
Provide Age-Specific Customized Support for Youth and Elderly

Soldiers and attendees visiting the 2023 KB Good Job Excellent Companies Job Fair held at COEX last May are looking at the job posting board. Photo by Huh Younghan younghan@

The government will expand support industries for vacant jobs to resolve the mismatch between labor market supply and demand. Additionally, it will establish a basic plan to advance vocational training and expand policies that fully cover training costs. Customized support policies will be separately prepared for vulnerable employment groups such as youth and the elderly.

On the 4th, the government announced the "2023 Second Half Economic Policy Direction," which includes these measures.

According to the plan, the government will prepare the "Second Vacant Job Measures" in the second half of the year. Currently, six support industries?manufacturing, logistics and transportation, agriculture, restaurants, overseas construction, and health and welfare?will be expanded to include construction, fisheries, shipping, and resource recycling industries. These sectors will focus on improving working conditions and actively supporting workforce matching.

The government is preparing vacant job measures because the gap between labor market supply and demand is deepening. According to the Ministry of Economy and Finance, as of April, there are approximately 216,000 vacant jobs. Despite the employment rate for those aged 15 and older reaching a record high of 63.5%, up 0.7 percentage points, some industries are experiencing recruitment difficulties. In particular, the shipbuilding industry had 200,000 workers in 2014 but dropped to less than half that number, around 90,000, last year.

Vocational training will be improved to be more field- and demand-oriented. The government plans to advance vocational training through the establishment of the 4th Basic Plan for Vocational Competency Development. The plan will include expanding training programs in new technology fields such as bio and semiconductors, activating win-win training between large and small-to-medium enterprises, and strengthening lifelong career management policies like the Job Competency Bank system. The specialized training under the National Tomorrow Learning Card, which fully supports training costs, will also be expanded, and additional incentives will be provided to excellent training institutions and courses.

Customized support will be provided for vulnerable employment groups such as youth and the elderly. For youth, more than 80,000 people will be supported through the "Work Experience Opportunities" jointly promoted by the public and private sectors, with plans to further expand the scale in 2024. The Tomorrow Learning Card, previously available only to mid- to long-term service members about to be discharged, will also be allowed for short-term service officers. Extensions of the public institution youth employment obligation system and expansion of language test period extensions will be implemented. The sunset on income tax reductions for youth employed by small and medium enterprises will be extended and the eligible scope expanded.

For middle-aged and older adults, a dedicated window for middle-aged workers will be established within employment welfare centers. A customized reemployment support package covering in-depth counseling and job support will be provided. Additionally, the "Elderly Employment Act," which provides the legal basis for local governments' elderly employment support, will be amended, and support plans for lifelong education for the new elderly will be prepared.

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