The government is pursuing a plan to more than double subsidies provided to young people who find employment in regional areas in a bid to boost youth employment.
For those who secure jobs in certain regions, the financial support available over a two-year period is expected to rise from a maximum of 7.2 million won currently to up to 19.2 million won.
According to relevant ministries, the government plans to announce a "Youth Job Recovery Plan" containing these measures as early as next week.
This action comes as the number of young people giving up on job hunting or remaining "resting" is increasing due to the gap between the jobs young people want and the working conditions offered by companies.
First, the scale of support under the Youth Job Leap Encouragement Grant will be significantly expanded.
Currently, young people aged 34 or younger who have worked for six months or longer after finding jobs in 40 specially designated population-decline support regions, such as Buyeo in South Chungcheong Province and Gochang in North Jeolla Province, can receive 300,000 won per month for up to 7.2 million won over two years. The government is considering raising this to 800,000 won per month, providing up to 19.2 million won over two years.
Those who find employment in population-decline preferential support regions, such as Gapyeong in Gyeonggi Province and Goseong in Gangwon Province, can currently receive up to 6 million won, while those taking jobs in other non-capital regions can receive up to 480,000 won. Plans to more than double these amounts are also being pursued.
A new subsidy for young people finding jobs in the capital area is also under review.
Even if they are employed by small and medium-sized enterprises or mid-sized companies in the capital area, subsidies would be paid directly to the young workers if they complete a government-prepared vocational training program, with the support amount planned to be set lower than that for non-capital regions.
Support for major corporations in regional areas will also be expanded, with the government considering providing incentives if large companies outside the capital area increase youth employment.
The government plans to create more than 200,000 jobs in both the private and public sectors by 2030.
The job-seeking promotion allowance under the National Employment Support System, in which young people predominantly participate, is also scheduled to be raised from 600,000 won per month this year to 650,000 won next year.
If all the measures currently under review by the government are reflected in next year's budget bill, the budget related to youth jobs is projected to reach the 7 trillion to 8 trillion won level, marking the largest scale ever.
However, some point out that it remains to be seen whether the expansion of cash-like support will actually lead to an increase in youth employment.
They argue that if government subsidies are paid even for young workers who would have been hired anyway without the support funds, the actual additional employment effect relative to the budget input could be limited.
The government plans to finalize the specific targets and scale of support following budget deliberations and other procedures.
(Reported by Kim Minjeong | Video by Na Hong-hee | Graphics by Yang Hye-min | Produced by SBS Digital News)
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