Time to put more stress on innovation growth
The unemployment rate rose to 4.5 percent last month, hitting the highest level for March in 17 years. This shows the grim reality of the nation's employment situation.
More seriously, the unemployment rate of young people ages 15 to 29 soared to 11.6 percent, more than double the overall jobless level. Few would deny this is an employment crisis.
Last year, the Moon Jae-in administration drafted and executed a supplementary budget of 11.2 trillion won ($10.5 billion) to create jobs. Sadly, its effects have yet to be felt. On the contrary, the job market has become tighter, hit by the shutdown of GM Korea's Gunsan plant, and a midsize shipbuilder being placed under court receivership.
To prevent further aggravation of the job market, the government formulated another extra budget plan of 3.9 trillion won early this month and submitted it to the National Assembly. Officials expect it will help create up to 220,000 jobs by 2022.
Critics attribute the soaring jobless rate to a steep increase in the minimum wage. Since the minimum wage jumped 16.4 percent to 7,530 won per hour Jan. 1, the whole sale and retail industry has so far lost 96,000 jobs. The education sector has also shed 77,000 jobs.
It is time for the Moon administration to overhaul its job creation policy which has yet to produce tangible results.
President Moon's income-led growth initiative is considered well-intended. However, the initiative has yet to generate more jobs. The Moon administration has focused on hiring more civil servants while turning irregular workers into regular ones in the public sector.
Now policymakers should allow the private sector to take the lead in offering more job opportunities. They should keep in mind that businesses should be the main actor in job creation. The government is required to create a favorable environment for them to increase hiring.
The government had better put more emphasis on innovation growth to encourage companies to find new growth engines in advanced fields such as biotechnology, big data, artificial intelligence and robotics.
The country is now suffering from "jobless" growth. Its March exports surpassed $50 billion for the first time. However the unemployment rate hit a 17-year high. This shows how difficult it is to solve the problem. More radical and innovative measures are necessary.
The unemployment rate rose to 4.5 percent last month, hitting the highest level for March in 17 years. This shows the grim reality of the nation's employment situation.
More seriously, the unemployment rate of young people ages 15 to 29 soared to 11.6 percent, more than double the overall jobless level. Few would deny this is an employment crisis.
Last year, the Moon Jae-in administration drafted and executed a supplementary budget of 11.2 trillion won ($10.5 billion) to create jobs. Sadly, its effects have yet to be felt. On the contrary, the job market has become tighter, hit by the shutdown of GM Korea's Gunsan plant, and a midsize shipbuilder being placed under court receivership.
To prevent further aggravation of the job market, the government formulated another extra budget plan of 3.9 trillion won early this month and submitted it to the National Assembly. Officials expect it will help create up to 220,000 jobs by 2022.
Critics attribute the soaring jobless rate to a steep increase in the minimum wage. Since the minimum wage jumped 16.4 percent to 7,530 won per hour Jan. 1, the whole sale and retail industry has so far lost 96,000 jobs. The education sector has also shed 77,000 jobs.
It is time for the Moon administration to overhaul its job creation policy which has yet to produce tangible results.
President Moon's income-led growth initiative is considered well-intended. However, the initiative has yet to generate more jobs. The Moon administration has focused on hiring more civil servants while turning irregular workers into regular ones in the public sector.
Now policymakers should allow the private sector to take the lead in offering more job opportunities. They should keep in mind that businesses should be the main actor in job creation. The government is required to create a favorable environment for them to increase hiring.
The government had better put more emphasis on innovation growth to encourage companies to find new growth engines in advanced fields such as biotechnology, big data, artificial intelligence and robotics.
The country is now suffering from "jobless" growth. Its March exports surpassed $50 billion for the first time. However the unemployment rate hit a 17-year high. This shows how difficult it is to solve the problem. More radical and innovative measures are necessary.
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