"Building a Database of Unemployed Youth to Support Long-Term Inactive Young People"

Government Announces "Job First Step Guarantee System"
Job Search Promotion Allowance Increased, Unemployment Benefits Expanded

The government will build a database (DB) of unemployed young people and support approximately 150,000 long-term inactive youths each year. The government is also considering a plan to allow individuals to receive unemployment benefits at least once in their lifetime, even if they voluntarily leave their job.

Kim Younghoon, Minister of Employment and Labor, is explaining the Job First Step Guarantee System during a briefing held at the Government Seoul Office Building on the 10th. Ministry of Labor

On September 10, the Ministry of Employment and Labor announced the implementation plan for the 'Job First Step Guarantee System' at the Government Seoul Office Building, aiming to ensure better job opportunities for all young people. This youth employment measure was introduced to prevent the narrowing of entry pathways into the job market for young people, as the youth employment rate has declined for 16 consecutive months as of last month, and the number of inactive youths has remained in the 400,000 range.

The Job First Step Guarantee System consists of three main components: ▲support for identifying and helping long-term unemployed youth recover, ▲expanding job opportunities for job-seeking youth in the era of artificial intelligence (AI), and ▲ensuring workplaces that uphold basic standards and provide growth environments for employed youth. The Ministry of Labor stated, "We focused on helping young people adapt to their first jobs without experiencing discouragement and on providing opportunities to try again even after failure." The ministry added, "The plan also includes measures to identify and support inactive youth."

First, for inactive youth, the government will establish an 'Unemployed Youth DB' at the pan-government level. By linking administrative information such as school records, military service, and employment insurance data-with the consent of the youth-the government aims to identify approximately 150,000 long-term unemployed young people each year. If these individuals repeatedly leave jobs, support programs from relevant ministries will be connected to suit their various circumstances. Work experience programs and psychological counseling will also be provided in parallel.

For job-seeking youth, the government will support training to develop AI-related skills across all industries. The 'K-Digital Training' program, which fosters IT talent, will be revamped to provide training in AI and AI transformation (AX) to 50,000 young people. A pilot project for 2,000 participants will also be launched to connect trainees with relevant job experience so they can gain on-site experience. The job search promotion allowance will be raised from 500,000 won this year to 600,000 won next year, with plans for further gradual increases. In 2027, the government is considering a reform that would allow individuals to receive unemployment benefits at least once in their lifetime, even if they voluntarily leave their job.

For employed youth, the government will support them so they can grow together with companies in workplaces where basic labor conditions are guaranteed and they are treated with respect. Information on companies that comply with labor laws and have no wage arrears will be made available on private recruitment platforms. A 24-hour AI labor law counseling service will also be operated so that young people can seek advice if they face issues such as wage arrears or workplace harassment.

The Ministry of Labor will promote the revision of the 'Special Act on Youth Employment Promotion' to provide a legal basis for these measures and to ensure the stable implementation of youth employment programs. Reflecting the reality of rising labor market entry age, the upper age limit for youth will be raised from 29 to 34. New provisions will be established to strengthen the legal foundation, including the collection and use of personal information for identifying inactive youth and the legal framework for work experience programs.

Minister of Labor Kim Younghoon stated, "If young people are discouraged at the starting line of their careers, the future of our country will inevitably be shaken." He added, "Through the 'Job First Step Guarantee System,' the government will ensure that no young person gives up due to uncertainty and that everyone can grow while being respected in the workplace."