Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Korea unveils 'Youth New Deal' to tackle youth unemployment
Finance Minister Koo Yun-cheol, center, speaks during an event announcing "Youth New Deal" plan at the aT center in Seocho District, Seoul, Wednesday. Federation of Korean Industries Chairman Ryu Jin, left, and Labor Minister Kim Young-hoon, right, also attended the event. Courtesy of Ministry of Finance and Economy
By Lee Hyo-jin
Gov't to provide training, work experience, reintegration support, financial aid for young job seekers
The government unveiled Wednesday a package of youth employment measures aimed at supporting around 100,000 individuals, as the youth employment rate falls to its lowest level since the COVID-19 pandemic.
The plan, dubbed the "Youth New Deal," is built around four pillars — training, work experience, reintegration support and hiring incentives — alongside expanded financial assistance for job seekers, according to the Ministry of Finance and Economy.
Under the training pillar, the government will partner with private companies and universities to provide programs for 19,000 young people in fields such as artificial intelligence (AI), semiconductors, finance and content creation.
It will also expand hands-on work experience opportunities to 23,000 young people across the public and private sectors, including new hiring for public projects and expanded internship programs at state-run institutions. The initiative is designed to ensure such experience can be formally recognized as part of job seekers' resumes.
The reintegration component targets young people who have left their jobs or have been unemployed for a long time, with the goal of preventing social isolation. The government plans to support 11,000 individuals through counseling, training and job placement assistance to help them reenter the workforce.
It will also expand youth support centers nationwide and strengthen outreach efforts to identify young people struggling from social isolation.
The fourth pillar focuses on incentives and infrastructure, aimed at encouraging companies to hire people without prior work experience and those in nonmetropolitan areas. About 44,000 individuals are expected to benefit from expanded financial support and hiring incentives for small and medium-sized enterprises.
The plan was announced at a policy briefing in Seoul attended by Finance Minister Koo Yun-cheol, Labor Minister Kim Young-hoon and Ryu Jin, chairman of the Federation of Korean Industries, along with officials from major conglomerates such as Samsung Electronics, SK Group and Hyundai Motor, as well as young job seekers.
These measures come as youth employment indicators continue to weaken, even as overall employment continues to rise.
Data from the Ministry of Data and Statistics showed that the number of employed people rose by 206,000 in March from a year earlier to 28.8 million, following a gain of 234,000 in February.
While overall employment has increased by more than 200,000 for two consecutive months year-on-year, the employment rate for those aged 15 to 29 fell to 43.5 percent in the first quarter — the lowest level since the COVID-19 pandemic. In the first quarter of 2020, the rate was at 42.2 percent.
Officials say the difficulties faced by young job seekers reflect a mix of structural factors, including the rapid adoption of AI across industries and companies' growing preference for experienced workers.