The government plans to establish a system to detect employment shocks early. As the job landscape rapidly changes due to the spread of artificial intelligence (AI) and the transition to carbon neutrality, the aim is to proactively respond by capturing signals of change before employment shocks materialize.
However, the government has yet to specify the exact scale of employment impacts or the budget required for the changes brought about by AI and industrial transition, leaving the specifics of the policy as a future task.
Development of Korean AI Exposure Index to Track Job Changes in Real Time
On July 9, the Ministry of Employment and Labor announced the 'Basic Plan for Employment Stability in Industrial Transition' in collaboration with relevant ministries. The plan focuses on continuously monitoring changes in the job market due to AI transition (AX) and green transition (GX) and linking vocational training with employment safety nets.
The government aims to quickly capture signals of labor market changes rather than making definitive predictions about the employment impacts of industrial transition. A ministry official stated in a pre-briefing, "Many experts believe it is inappropriate to prepare government policies based on predictions of the speed of AI technology development. Our role is to quickly capture actual changes in the labor market and respond flexibly through institutional measures."
To this end, the government will develop a 'Korean AI Exposure Index (K-AIOE)' by 2027, reflecting the characteristics of the Korean labor market and job roles. This decision stems from the recognition that applying foreign indices to domestic job classifications has limitations in reflecting actual job differences.
Jobs with high AI exposure will be tracked through the 'Korean Canary Dashboard.' This system will provide early warnings when abnormal signals appear by monitoring employment changes in real time by industry and age. An 'Industrial Transition Job Map' will also be published to provide a comprehensive view of transition trends and labor demand by industry and region.
Young people are identified as a key target for response. According to an analysis by the Bank of Korea, 98.6% of the 211,000 jobs lost for those aged 15 to 29 from July 2022 to July 2023 were concentrated in industries with high AI exposure. Concerns have been raised that simple and repetitive tasks, such as data collection and analysis, are being replaced by AI, leading to a reduction in entry-level hiring and weakening the 'ladder of growth' for young workers to gain experience.
However, the government does not believe that the spread of AI will necessarily lead to large-scale job losses. A ministry official remarked, "It would be misleading to quantify the changes in workforce due to AI. It is universally acknowledged that the way we work and the content of jobs are changing."
The impact of the transition to carbon neutrality is likely to be concentrated in specific regions and among middle-aged workers. High-carbon industries such as coal power, automotive, petrochemicals, steel, and cement are concentrated in certain areas, and the proportion of skilled workers specialized in processes and equipment is also high. The percentage of workers aged 50 and older in high-carbon industries is 47.8%, which is 6 percentage points higher than in low-carbon industries (41.8%).
Support for 1 Million in AI Job Training; Budget Yet to be Determined
The government will use vocational training as a key means to absorb the impacts of the transition. From 2026 to 2030, it will support AI job training for over 1 million people and expand training programs that combine AI and green technology. A 'Plus Qualification' system will also be introduced, reflecting AX and GX training completion in existing national technical qualifications.
Regions most affected by industrial transition will be designated as 'Just Transition Special Zones' in advance. These special zones will receive a package of support for employment stability, new industry development, and administrative and financial assistance. The mandatory reemployment support services for middle-aged workers will gradually expand from businesses with 1,000 or more employees this year to those with 500 or more next year, and to those with 300 or more by 2029.
The specific budget for each project is expected to become clearer after the government budget proposal for next year is finalized. A ministry official stated, "Next year's budget is currently under review by the financial authorities, and we will be able to explain the scale of each project once the government proposal is submitted to the National Assembly and the year-end budget is finalized."
The government plans to operate this basic plan as a 'rolling plan' that will be revised annually rather than a fixed five-year plan. A ministry official noted, "This plan serves as a starting point for labor, management, and the government to respond to employment stability in industrial transition based on certain principles and directions. We will supplement detailed plans each year to align with market changes."
* This article has been translated by AI.
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