ed Copycat ministry

Government’s cash program resembles that of Seoul mayor

The central government’s sincerity toward alleviating unprecedented youth unemployment is seriously questioned with its latest cash allowance program for young jobseekers.

The unemployment rate among people aged between 15 and 29 hit a record monthly high of 10.9 percent in April and it has stayed above 10 percent since. The idea of handing out cash to jobseekers is a flawed response to the dire job situation for some very obvious reasons. First, it is founded on a populist motive. Second, it is not a long-term solution to the youth unemployment crisis. Third, it will create moral hazard among young people and undercut their independence. Fourth, it is unfair because it leaves many feeling left out since only a tiny portion of the population is selected.

These are the reasons the central government applied to its adamant disapproval of Seoul Mayor Park Won-soon’s cash allowance program for people in their 20s. But the central government has launched a program that resembles that of the mayor, which recently kicked off on Aug. 3 by giving cash subsidies to 2,800 applicants. The Seoul city administration will provide 500,000 won monthly for six months to assist young people financially while they look for work.

The Ministry of Employment and Labor has drawn much criticism for starting a similar cash subsidy program for young jobseekers, something it had been firmly against when the mayors of Seoul and Seongnam, Gyeonggi Province started it. The labor ministry suddenly announced the program last week, just days after Minister Lee Ki-kwon blasted Mayor Park during a press conference for “shaking the foundation of the government’s job creation policies” and expressing concerns that other local administrations will rush toward similar programs. The ministry even triggered criticism over a breach of local autonomy by ordering the Seoul city administration to suspend the cash program and retrieve the money that has already been distributed to the selected applicants.

The labor ministry’s disapproval of Seoul and other local administration’s youth allowance has lost ground since it has now embarked on a similar program itself. The ministry announced last Friday that it will offer a monthly subsidy of 200,000 won to help job seekers under 34 to finance expenses related to finding jobs, such as renting suits or taking photographs for resumes. The ministry, in partnership with the state-run Youth Hope Foundation, will implement the program in September.

Minister Lee later explained that his ministry’s program was different from that of Seoul in that it will have a system of making sure that the funds are spent solely on job-related activities. But his argument is not convincing enough since both programs are based on providing cash to young people who are in search of jobs. It is worrisome that the central and local governments are resorting to such short-term responses to the youth unemployment crisis.

The clash among central and local governments over welfare issues is also unproductive and only causes confusion among young jobseekers. At such extremely difficult time for young jobless adults, the right thing to do for the central government is to work hand in hand with local governments to expand quality jobs in all corners of the country and support start-ups.