Gov't to offer incentives for job creation

SEOUL, Jan. 21 (Yonhap) -- The government said Thursday that it will provide tax
and other benefits to smaller companies to support their recruitment of new
workers in a bid to bolster still-sluggish employment conditions despite a
fast-rebounding economy.

The move is part of a raft of government measures jointly unveiled by
economy-related ministries after their first employment strategy meeting this
year chaired by President Lee Myung-bak.
"Despite the fast recovering economy, employment conditions remain in a slump as
they usually lag behind the pace of a rebound," the government said in a joint
statement. "We are placing top priority on job creation this year and will push
to help provide jobs in the short term while crafting longer-term measures to
deal with underlying problems in the labor market."
Under the measures, the government said that it will offer tax benefits to small
and medium-sized companies that recruit more full-time workers compared with a
year earlier. The benefits will remain in place until the first half of next
year.
The government added that it will provide a network linking companies and job
seekers by providing updated recruitment information. Named "Work-net," the
network will help smaller companies secure necessary workers, it explained.
Small companies are currently facing difficulty finding workers as more college
graduates and job seekers tend to prefer larger businesses for first-time
employment. Those landing a job through the network will be offered
"employment-encouragement benefits" for one year.
According to data by the labor ministry, small companies will need to recruit
around 210,000 more workers to sustain business operations.
In related moves to induce employment and ease the frozen job market, the
government is also pushing to provide diverse job-training programs and encourage
the launch of new businesses by shortening red-tap and providing financial
support.
The measures were announced amid growing concern in the government that the labor
market slump will continue for some time despite the faster-than-expected
economic recovery.
According to official estimates, the jobless figure totaled 890,000 at the end of
last year, up from 770,000 a year ago. The nation's jobless rate also rose from
3.2 percent to 3.6 percent over the cited period.
In December, the government said that it will launch employment strategy meetings
to explore diverse ways to tackle the stalled labor market conditions. The
meeting will be held every month until the end of this year.
The government aims to generate around 250,000 more jobs this year through the
meetings, up from its initial annual target of 200,000.
Mid and longer-term strategies include expanding fiscal support for research and
development, while diverse tax incentives will be given to bolster employment,
the government noted.
It also plans to step up surveillance of unfair business activities by larger
businesses that could hamper the operation of smaller companies, the main driving
force for job creation in the nation.
Regulations will be eased to boost the local tourism and leisure industries as
well, as the sectors are deemed to be more effective in generating jobs than the
manufacturing industry, the government noted.
kokobj@yna.co.kr
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