Analysis of Fiscal Programs regarding Employment Policy
Published on 14 August 2018
Published by Economic Industrial Program Evaluation Division of the Budget Analysis Department
In order to spearhead future development by creating jobs, reducing unfair workplace discrimination and improving job quality, the Korean government has developed and published the ｢5-Year Roadmap for Employment Policy｣(October 2017) and has been pursuing fiscal programs and policies in this regard. The ｢5-Year Roadmap for Employment Policy｣ is the action plan for realizing the job-related goals which were proposed under the 5-year plan for national policy management as part of the implementation of the core economic strategy in the form of the “job-centered economy,” pursued by the incumbent administration.
The ｢5-Year Roadmap for Employment Policy｣ is composed of four areas including the development of employment infrastructure, job creation (public and private), the improvement of job quality and the provision of support for individual job-matching; while its budget was increased from 18.4 trillion won in 2017 to 24.2 trillion won in 2018. This report analyzes the overall policy environment, overseas case studies, program outcomes and core investment direction of the fiscal programs related to the ｢5-Year Roadmap for Employment Policy｣.
As a result, it was suggested when conducting an employment impact assessment regarding the development of employment infrastructure, the employment effect of the fiscal programs needs to reviewed by taking into account not only the job creation coefficient but also medium-to-long term productivity and economic development. It was also suggested that efforts need to be made toward strengthening the job safety-net for workers in social insurance blindspots. On job creation, it was suggested that along with reinforcing policy support for the growth of high-potential enterprises, medium-to-long term measures need to be developed regarding the impact of structural changes within industry on jobs. Regarding the improvement of job quality, it was suggested that efforts should be made to enhance the level of social security for irregular workers. Regarding the provision of support for individual job-matching, it was suggested that continued efforts need to be made to facilitate youth employment by resolving issues such as mis-matches between prospective youth employees and potential SME employers, as well as on strengthening support to improve options for women in their 30s who have had their careers interrupted.