35th Meeting of Central Economic Response Headquarters
Government to Work for Pre-crisis Level Employment
Deputy Prime Minister Hong Nam-ki presided over the 35th Meeting of the Central Economic Response Headquarters held on May 12. DPM Hong looked into the April job data, released on the day, and discussed plans to support the job market until it rebounds to the pre-crisis level. International shipping and regulation free zones were other topics of discussion.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
April employment data
The economy added 652,000 jobs year-on-year in April, job growth more than doubling from the previous month (314,000) and posting a third consecutive month increase against month-on-month data. Manufacturing jobs rose for the first time in 14 months and service jobs jumped 507,000, improving for two months. Around 350,000 jobs, more than half of the total April job increase, were made in the private sector. The employment rate improved in all age groups, including among those in their 30s and 40s. Permanent jobs grew faster, rising 313,000 in April and posting an increase for four consecutive months, and average weekly work hours increased by 3.4 hours.
Although improving, jobs have yet to recover to the pre-crisis level, and the government will do the following to support the job market.
Worker safety net
- Extend the employee retention support for virus-hit businesses until the end of June
- Increase unemployment support for young adults and the unskilled
- Get ready to include independent workers in the country’s employment insurance program from July 2021
Job market
- Promote high-tech workforce development through retraining, such as semiconductor and software engineer programs
- Expand regulatory sandboxes
- Increase high-tech startup support, including the aid to promote remote businesses and BIG3 enterprises
- Promote R&D and commercialization of green new deal technologies
Global shipping container shortage
Our exporters have been suffering from the global shortage of shipping containers amid surging exports. To help address the shipping problem, the government will work to provide extra shipping capacity, double its logistics support for exporters, and streamline customs procedures to help ease ship logjams at ports.
Regulation free zones
A total of 24 regulation free zones have been approved since the adoption of the program in April 2019. There have been 128 cases of special deregulation, and some will soon have to deal with the expiration of the regulatory benefits. To help those businesses continue to benefit from the program, the government will work on law revisions, including the extension of the benefits and temporary deregulation.
