Finance Minister and Deputy Prime Minister Ku Yun-cheol has called for a comprehensive response from all government ministries as employment conditions become increasingly uncertain due to the prolonged Middle East conflict. On June 10, during a meeting with officials from relevant departments at the Government Seoul Building, he reviewed the current employment situation and strategies for addressing it.
Ku noted, "Despite the ripple effects of the Middle East conflict, we have focused on stable management, successfully reducing the inflation rate by 0.6 percentage points through policy efforts such as the maximum oil price system."
He further assessed that the ongoing conflict, coupled with rising raw material prices and supply chain challenges, has led to a year-on-year decline in employment figures for May, marking the first decrease in 17 months. The latest data from the National Data Agency revealed a drop of 40,000 jobs compared to the same month last year, reversing the previous month's increase of 74,000 jobs. The youth demographic is particularly affected, with worsening conditions in key sectors such as manufacturing, construction, and agriculture.
In light of the persistent uncertainties stemming from the Middle East conflict, Ku urged all ministries to maintain heightened vigilance and respond decisively.
The government plans to expedite the implementation of key tasks outlined in the 'Youth New Deal Promotion Plan' announced in April to stimulate youth employment. This includes enhancing support through initiatives like the K-New Deal Academy, Youth Leap Bootcamp, and KDT projects. Additionally, the government aims to train over 1,000 professionals in advanced industries, including Agentic AI, in the second half of the year.
To prevent management difficulties in industries from leading to employment instability due to the prolonged conflict, the government will implement reforms to the employment retention subsidy and ensure the smooth execution of the 'Burtimi-eum Project.' It also plans to expand support through the designation of employment crisis areas and special employment support sectors as needed.
To proactively address changes in industrial structure related to AI (artificial intelligence) and green transitions, the government will swiftly prepare a 'Basic Plan for Employment Stability in Industrial Transition' in collaboration with relevant ministries.
* This article has been translated by AI.
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