[2021 Budget] Ministry of Employment 35.5 Trillion Won... Focus on Unemployment Benefits and Employment Retention

Approval of Next Year's Budget at Government Cabinet Meeting on the 1st
11.3 Trillion Won Allocated to Unemployment Benefits Account Considering COVID-19 Impact
Introduction of Job-Seeking Benefits for National Employment Support Program and Artists
Expansion of Youth Job Support... Focus on Talent Development

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government has increased the Ministry of Employment and Labor's budget for next year by about 5 trillion won compared to this year, considering the employment crisis caused by the aftermath of the novel coronavirus infection (COVID-19). The budgets for unemployment benefits (job-seeking benefits) and employment retention subsidies have each increased by more than 1 trillion won.

On the 1st, the government approved the Ministry of Employment and Labor's budget proposal of 35.4808 trillion won at the Cabinet meeting. This amount is 4.9669 trillion won (16.3%) higher than this year's original budget. The general and special accounts increased by 217.7 billion won (3.2%) to 7.0973 trillion won, and the expenditure scale of five funds including employment and industrial accident insurance funds rose by 4.7492 trillion won (20.1%) to 28.3836 trillion won.

Looking at the budget projects by sector, the National Employment Support System (8.236 billion won), targeting 400,000 low-income and young people, will be fully implemented. It mainly consists of employment support programs such as job counseling and vocational education, and a job-seeking promotion allowance of 500,000 won per month for up to six months.

Considering the recent increase in unemployment benefit recipients, 11.3 trillion won was allocated to the unemployment benefit account. This amount can support 1.64 million people and is an increase of 1.8328 trillion won compared to this year's original budget. Next year, artists who have paid employment insurance premiums (3,710 people, 6.4 billion won) will also be eligible to receive unemployment benefits.

For small businesses with fewer than 10 employees that newly enroll in employment insurance and national pension, 80% of the insurance premiums paid by employers and workers will be supported. Additionally, employment insurance premium support for 430,000 special-type workers and 35,000 artists has also been newly reflected.

Considering employment instability due to COVID-19, 1.1844 trillion won was allocated for employment retention subsidies, and a total of 450,000 people are expected to benefit. This is an increase of 1.1563 trillion won compared to this year's original budget.

Youth employment support projects will also be expanded, including the Youth Additional Employment Incentive (12.018 billion won), which supports 9 million won annually for three years when hiring one additional young person, and the Youth Tomorrow Savings Deduction (14.017 billion won), which helps accumulate a lump sum of 12 million won after two years of service.

The 'Youth Digital Jobs' program (4.676 billion won), newly established in this year's third supplementary budget, plans to support 50,000 people next year as well.

Considering the impact of COVID-19, the support for wage arrears compensation for workers will be expanded by 20,000 people compared to this year (135,000 people, 6.698 billion won).

Furthermore, efforts will be made to actively train digital and new technology personnel and expand support projects for non-face-to-face training and work.

Through innovative companies, universities, and training institutions, the plan is to nurture 180,000 'future core practical talents' in new technology fields by 2025. Next year, a budget of 139 billion won has been allocated with a goal of training 17,000 people.

When job seekers take digital and new technology training, an additional 500,000 won will be supported for training expenses (20 billion won, 40,000 people), and five platforms sharing digital training infrastructure will be established (5 billion won).

The smart vocational training platform will be advanced (5.3 billion won) by introducing interactive lecture systems, and public training will be strengthened by expanding e-learning and virtual training content development (320 courses).

In addition, comprehensive consulting related to personnel and labor management for telecommuting and remote work will be supported (400 locations), and indirect labor cost support for flexible work will be expanded (11,000 people).