Government "Direct Job Creation Project Exceeds Targets"... Employment Rate Also 'All-Time High'

740,000 Hired in January
Plan to Achieve 90% of First Quarter Target Workforce

The government exceeded its January target in the direct job creation project aiming to hire 1.14 million people in the first half of the year. It plans to strengthen policy responses to ensure that the export-driven economic recovery translates into domestic demand improvement, and continue institutional improvements such as expanding the recently increasing female economic activity.

On the 16th, the Ministry of Economy and Finance and the Ministry of Employment and Labor held the 14th meeting of the joint 'Job Task Force (TF)' with related ministries to review the progress of the 'Direct Job Creation Project' including these contents, and discussed employment and wage trends as well as future prospects.

As a result of checking the progress of the direct job creation project, the government hired 747,000 people as of the end of last month, exceeding the target of 719,000. The government had previously announced its plan to execute more than 90% of the annual direct job creation plan (1,178,000 people) by the first quarter and over 97% by the first half of the year to stabilize jobs for the elderly and vulnerable groups.

Lee Seong-hee, Vice Minister of Employment and Labor, is delivering opening remarks at the "Expert Meeting on Unemployment Benefits System to Promote Labor Market Participation" held on the 5th at the Seoul Regional Labor Office in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Kim Byung-hwan, 1st Vice Minister of the Ministry of Economy and Finance, said in his opening remarks, "We will steadily promote the direct job creation project aiming to hire 1.14 million people in the first half of the year and review and supplement measures to resolve precarious jobs." He added, "We will strengthen policy responses so that the export-driven economic recovery quickly leads to domestic demand improvement, and simultaneously pursue institutional improvements to expand female economic activity."

According to the employment trends announced that day, the employment rate for those aged 15 and over (61.1%), the OECD comparative standard employment rate for ages 15-64 (68.7%), and the economic activity participation rate (63.3%) all recorded their highest levels for January.

Vice Minister Kim explained, "Employment indicators continued a solid trend last year as employment rates rose across all age groups, including youth. Despite a high base number of employed persons, the number increased by 380,000 compared to the same month last year and by 82,000 compared to the previous month, showing an expanded growth rate compared to the end of last year."

He continued, "By industry, employment improvement continued mainly in health and welfare sectors due to increased care demand, and manufacturing also increased compared to the previous year, showing favorable employment trends in most sectors. For the core working age group in their 30s, the number of employed persons increased for 25 consecutive months, mainly among women," he added.

He evaluated, "The proportion of regular employees (58.4%) recorded the highest level for January, and jobs with 36 or more working hours greatly increased, improving the qualitative aspect of employment."

With the first employment indicators of the year showing favorable results, the government expects the overall employment market conditions to maintain a stable trend this year. However, concerns remain about geopolitical instability and sluggish construction orders, so the government plans to closely monitor downside risks to employment.

Lee Sung-hee, Vice Minister of the Ministry of Employment and Labor, said, "As forecasted by major institutions at the beginning of the year, downside risks such as unstable international situations and growth slowdowns in major countries due to high interest rates persist. Especially, there will be a time lag before the semiconductor and export-driven economic recovery is transmitted to the labor market."

Vice Minister Lee added, "The government will promote early execution of fiscal support job projects in the first half of the year to stabilize income for the elderly and low-income vulnerable groups, provide tailored support for employment-vulnerable groups such as youth, women, and middle-aged workers facing difficulties in finding jobs, and continue policies to resolve labor shortages in industrial sites."