Additional 1.15 Million Jobs to be Created By 2008

The South Korean government is planning to create an additional 1.15 million jobs by 2008 to raise the employment rate to the average level of the Organization for Economic Cooperation and Development (OECD).

The plan also includes “Measures to actively improve employment,” to seek ways to precipitate female employment. In addition, the government has decided to approve temporary unemployment insurance for the self-employed and to increase the admission rate of daily laborers and workplaces with less than five workers to the industry accident and employment insurance plan.

Minister of Labor Kim Dae-whan reported this plan to President Roh on March 24.

According to the plan, as of late last year, the employment rate was 63.6 percent (the ratio of the employed ages 15 to 64 who are capable of producing), and it will be increased to 65 percent, the average level of the OECD in four years. To get a 1.4 percent increase in the employment rate means that an additional 1,150 thousand jobs needs to be created.

The Ministry of Labor is planning to create a balance between the supply and demand in the labor market by first combining 118 employment security centers nationwide and nine information networks.

As of late February, although the number of unemployed reached 925,000, medium and small-sized companies say they are 168,000 employees short, which clearly testifies to the seriousness of the problems faced by the labor market.

The Ministry of Labor has decided to raise the admission rate of companies seeking employment and industry accident insurance. Currently, the admission rate of workplaces with less than five workers and daily workers is 64 percent and 23 percent, respectively. The target figures are 70 percent and 35 percent.

In addition, by legalizing “Measures to actively improve employment” in order to precipitate female employment, the ministry plans to first apply the law to state-run enterprises and workplaces with more than 1,000 workers.

Sang-Ho Kim hyangsan@donga.com