[My Name is Chwijunsaeng] Job Support Needs 'Practical Experience' More Than a Few Bucks

Various Indicators and Job Market Show 'Green Light'
But 620,000 People Have Given Up Job Seeking
Job-Seeking Promotion Allowance Used for Living Expenses
Concerns Over Creating Long-Term Unemployment
Applicants Need Qualifications Desired by Companies
Urgent Revision of the Employment Procedure Act Needed

Job seekers visiting the '16th Foreign-Invested Companies Job Fair' held on the 21st at SETEC in Gangnam-gu, Seoul, are looking at the recruitment bulletin board. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporters Byungdon Yoo, Gyumin Oh] The gap between indicators and reality.

This summarizes the problems of the job market as described by job seekers. According to the Statistics Korea announcement, the youth employment rate in January was 45.7%, with nearly 4 million employed youths. Meanwhile, the youth unemployment rate was 6%, with 252,000 unemployed youths. Youth employment indicators are on the rise, while unemployment indicators are declining. Various surveys show that 6 to 7 out of 10 large companies plan to hire new employees, and some are conducting large-scale recruitment. This suggests a favorable trend in the hiring market.

However, another Statistics Korea report shows that last year, the number of discouraged job seekers reached 628,000, the highest since 2014. Discouraged job seekers are those who searched for a job for a year but did not seek employment for a month due to lack of suitable opportunities. This group also includes those who did not seek jobs due to lack of education or technical experience, effectively including job seekers preparing for employment. Job seeker A (25) said, "Quality jobs are already a very narrow door, and even new graduates without specs or experience find it difficult to pass the document screening," adding, "Support for chronically unemployed youth is lacking."

The 'National Employment Support System' for job seekers provides up to 3 million KRW over six months, paying 500,000 KRW monthly as job promotion allowance and employment activity costs to those who want to find employment. However, according to the Ministry of Employment and Labor data, 76.4% of recipients use the job promotion allowance for living expenses, which is more than the 50.3% who use it for job search activities. Because it is used for living expenses, 22.1% expressed dissatisfaction with the amount, resulting in lower satisfaction compared to other categories.

There are calls for realistic support that enables job seekers to gain practical experience and secure employment rather than indiscriminate cash support. Professor Jaehun Jung of the Department of Social Welfare at Seoul Women's University said, "Employment should be created in the market, but there are limits to creating it by giving government subsidies," adding, "Like Germany, vocational training or practical experience should be made available regardless of vocational or humanities tracks." Professor Taegi Kim of Dankook University's Department of Economics also argued, "Cash support may rather lead job seekers into long-term unemployment," and "Good jobs like those in large corporations should increase through various policies such as public enterprise privatization."

Amendments to the Recruitment Procedure Act are also needed to address difficulties experienced during company interviews. In September last year, independent lawmaker Miyang Yoon proposed the 'Partial Amendment to the Act on Fairness in Recruitment Procedures,' which prohibits requesting or asking for 29 categories of personal information unrelated to job duties, such as age and marital status, throughout the recruitment process. The bill also includes provisions for fines up to 10 million KRW for violations. However, the bill was referred to the Environment and Labor Committee but has yet to undergo any review.