Gov't to announce details on job creation plan for youths

South Korea aims to announce specific job creation measures for young people soon, responding to recent labor market challenges, according to Finance Minister Koo Yun-cheol. During a meeting with economy-related ministers, Koo highlighted the sluggish employment rates among young people and in the manufacturing sector, despite overall gains.

The previous day, the data ministry reported that South Korea added 108,000 jobs in July compared to a year earlier, but the employment rate for those aged 15 to 29 dropped by 1.6 percentage points to 44.2 percent, marking the 27th consecutive monthly decline. Concurrently, the unemployment rate for this age group rose by 1.3 percentage points to 6.8 percent, the largest annual increase in over five years.

Koo attributes the decline to various factors, including the prolonged conflict in the Middle East, an unprecedented heat wave, and drought in certain regions, which are impacting employment and consumer prices. In response, the government plans to swiftly prepare and announce comprehensive measures to revitalize employment among young people, alongside targeted policies for struggling sectors such as manufacturing and construction.

The manufacturing sector saw a decline of 68,000 jobs in July compared to a year earlier, marking the 25th consecutive monthly decrease. Similarly, construction-related jobs declined on-year for the 27th consecutive month.

The government is particularly focused on accelerating the three megaprojects initiative, aiming for corporate investment to generate a self-sustaining cycle of growth engines and quality jobs that appeal to young people. These megaprojects, unveiled in late June, include plans for a semiconductor production cluster, physical AI, and AI data centers in regional areas.