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Part of President Wen’s special measures
The Ministry of Materials promotes the inclusion in the supplementary budget
Criticism of “manipulating jobs paid with taxes”
Photo = Getty Image Bank
The government has decided to promote a plan to support labor costs when small business owners hire temporary and day workers. It is part of the ‘special work plan’ ordered by President Moon Jae-in. However, it has already been noted that it will only create temporary jobs through taxes and intensify the phenomenon of fiscal work addiction.
An official from the Ministry of Strategy and Finance said on the 17th: “In consideration of the serious employment crisis, the government is considering a measure to subsidize the labor cost when new temporary and daily workers are hired for a temporary period. If confirmed, it will be included in an additional budget that will be presented to the National Assembly early next month.
The government is operating an additional youth employment incentive system that provides 9 million won per person per year for three years when youth are selected as regular workers. This applies only when small and medium-sized companies hire regular workers. The government’s plan is to create a new project to support small business owners and freelancers in hiring temporary and daily jobs. Temporary workers refer to workers whose employment contract period is less than 1 month to less than 1 year, and daily workers are less than 1 month.
A government official explained the background to the countermeasures, saying: “There will be a small increase in demand to hire HR again due to the relaxation of social distancing, but small business owners often have serious business difficulties even if they want to hire them. . “He explained that” although there is hardly a precedent of financial support for non-permanent workers, it is necessary to take into account that the employment situation is so serious and that there are many essential young people, including temporary or daily jobs.
According to the National Statistics Office, the number of employees in the last month decreased by 982,000 compared to the same month last year. This is the largest decrease since December 1998 (-1283,000 people) during the financial crisis. On the 15th, President Moon ordered the government to “include enough employment projects and budgets to overcome the employment crisis in the supplemental budget to be prepared for the 4th disaster grant.”
Labor countermeasures include expanding the supply of direct jobs. Direct jobs are temporary public jobs created with government finances. This year’s supply plan is 1,040,000 and is expected to add up to at least 100,000.
Government “better than being unemployed” … Monitoring criticism of the “Increase in non-regular workers”
Subsidies even if temporary / daily jobs are selected
The government card “Support for labor costs for hiring temporary and daily jobs”, which the government presented to overcome the employment crisis, is an unprecedented measure. Temporary workers are workers whose employment contract period is less than 1 month to less than 1 year, and day workers are less than 1 month. They are all non-regular workers. When the government grants subsidies to the hiring of these non-regular workers, criticism may arise that “is it necessary to increase the employment of irregular workers?”
A government official said: “We know this is a measure that can pose several problems,” and said: “Most of the jobs that have declined recently are temporary and daily jobs, and this will have a great impact on young people. Wouldn’t it be better to become unemployed with no income if a young person got a job, even if it was a temporary or day job with government support? “The government explained that it will be helpful for small business owners and self-employed people who They can’t have a big impact on sales, even if they want to hire a new one.
In January, the number of temporary and daily workers was 4,995,000, a decrease of 795,000 from the same month last year. This represented 81% of the total employed (982,000). Of temporary and daily jobs in decline, the proportion of people aged 30 and under (350,000) reached 44%.
The government has not yet decided on the level of support, the number of people and the budget for supporting temporary and daily employment. In the case of per capita support, it is observed that there is a high possibility that the additional youth employment subsidy granted by SMEs when they hire young people as permanent workers will be decided at a slightly lower level, considering that 750,000 won per month I selected.
The government is also considering expanding the subsidy for additional youth employment. Due to the high demand from SMEs, this project suffered from budget shortages every year. There is a new budget to support 90,000 youth this year, but since it is very likely to close early this time, he plans to increase the support target by adding a budget in advance.
In addition, labor countermeasures will include △ Expanding the supply of financial jobs, △ Expanding financial support for startups and venture companies, and △ Expanding the level of support for job maintenance. However, it is noted that these measures have limitations because they are a ‘consideration’ of existing countermeasures and ‘temporary measures’ that mobilized taxes.
Kang In-soo, professor of business administration at Sookmyung Women’s University, said: “The government and the ruling party are reducing the employability of businesses by imposing regulations like the Severe Disaster Law even in the midst of difficulties. economic due to infection by the new coronavirus (Corona 19). We need to improve. “
Worker countermeasures with the 4th disaster grant are expected to be included in the additional remediation budget to be prepared early next month. Since a considerable amount of budget is required for labor countermeasures, the size of the supplemental budget is more likely to be expanded than originally planned. The Ministry of Knowledge Economy was considering about 12 trillion won, but it is forecast to exceed 20 trillion won.
Reporter Seo Min-joon [email protected]
