Government to Announce 'Youth Job Recovery Plan' in Q3, Mobilizing All Resources to Tackle Employment Slump

In an effort to overcome the prolonged stagnation in employment among young people and in the manufacturing sector, the government will prepare and announce a tentative "Youth Job Recovery Plan" in the third quarter of this year.

On July 28, a joint meeting of the Job Task Force was held at the Government Seoul Office, co-chaired by First Deputy Minister of Finance and Economy Hyungil Lee and Deputy Minister of Employment and Labor Changjun Kwon. During the meeting, the government reviewed measures for the Youth Job Recovery Plan as well as responses to employment trends in the manufacturing sector.

At the meeting, the government discussed a comprehensive strategy that includes phase-by-phase support policies, ranging from nurturing future talent among young people, to job matching, and to supporting ongoing career growth after employment. This plan will undergo inter-ministerial coordination and further supplementation, with a final version to be confirmed and announced within the third quarter. In addition, the government intends to analyze the factors behind the poor performance in vulnerable sectors such as manufacturing, mobilize all available policy tools, and introduce countermeasures sequentially through the Economic Ministers’ Meeting.

Hyungil Lee, Deputy Minister of Finance and Economy, is presiding over the 3rd Job Task Force meeting held on the 23rd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Yonhap News

The reason the government has chosen to roll out these targeted measures is the severe employment downturn among young people and in the manufacturing sector, which is masked by an optical illusion in the overall employment indicators. According to the "June Employment Trends" released by the Ministry of Data and Statistics, the number of employed persons aged 15 and older increased by 63,000 from a year earlier in June, returning to growth after a month. However, the number of young people (aged 15 to 29) employed in June plunged by 197,000 compared to the same month last year. The employment rate for young people fell by 1.7 percentage points year-on-year to 43.9%, marking a 26th consecutive month of decline. Meanwhile, the youth unemployment rate rose by 0.9 percentage points to 7.0%.

The downturn in the manufacturing sector, which provides high-quality jobs, also persists. The number of employees in manufacturing dropped by 97,000 from a year earlier in June, marking a decrease for 24 consecutive months. The construction sector also lost 67,000 jobs, extending its decline for 26 consecutive months. As a result, the employment-generating capacity of core industries has been significantly weakened.

Amid continued external uncertainties, including ongoing tensions in the Middle East, the government plans to continue its proactive policy response to prevent the employment stagnation in struggling sectors and vulnerable groups from hindering the overall economic recovery.

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