Government alarmed by May jobs decline; to expand employment incentives and accelerate future industries including semiconductors and small modular reactors
The government has declared the drop in employment in May a warning signal for the labor market and is mobilizing a pan-government response with youth job recovery as its top policy priority.
Deputy Prime Minister and Finance Minister Koo Yun-cheol said Friday at an emergency economic headquarters meeting at the Government Seoul Complex that "uncertainty in employment conditions is growing, as the number of employed workers turned negative in May," adding that the government would "put the highest policy priority on improving youth employment and spare no effort."
The government said it would closely analyze detailed employment trends by demographic group and industry sector, moving swiftly to address areas requiring immediate action. It plans to strengthen on-site inspections through cooperation among related ministries, actively identify medium- and long-term institutional reform tasks, and review ways to expand employment-related incentives.
Koo said the government would push ahead with speed on the core tasks of the Youth New Deal plan announced in April and actively identify additional supplementary measures.
Koo assessed the current economic situation, saying the Korean economy "is showing solid growth, but price and supply chain pressures from the war in the Middle East and volatility in the exchange rate and financial markets continue." He added that the government would "maintain heightened vigilance over prices and employment, minimize the impact of the Middle East war, and do everything possible to stabilize people's livelihoods."
On the government's ultra-innovation economy projects aimed at securing world-class technology and capturing global markets, Koo said a commercialization technology roadmap for next-generation power semiconductors would be completed in June, with large-scale research and development planning linked to demand companies set to begin.
For small modular reactors, he said the government would pursue early commercialization with urgency under the Special Act on Promoting and Supporting SMR Development, set to take effect in September. He also said the government would actively support technology development and field demonstration for on-sensor AI — which integrates sensor and AI technology — actuators for humanoid robots, and secondary batteries.
Koo said "future growth engines for economic revitalization must start from the regions," announcing that starting next week he would personally travel across the country's "five poles and three special zones" to identify region-specific growth drivers and provide systematic support.
Amid a series of large-scale casualties from industrial accidents — including a fire at Daejeon Anjeong Industrial and an explosion at Hanwha Aerospace's Daejeon factory — the government also announced at Friday's meeting that it would launch a sweeping fire safety inspection of factories and warehouses nationwide.
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