The government will plan comprehensive measures to prepare for a possible massive employment shock due to COVID-19.

On April 9, the Ministry of Economy and Finance and the Ministry of Employment and Labor took part in the fourth crisis management meeting chaired by Deputy Prime Minister cum Minister of Economy and Finance Hong Nam-ki at the government office in Seoul and decided to inspect the nation’s employment status and discuss future responses to the situation in connection to COVID-19. The government decided to go beyond existing measures, which support labor costs for business owners centered on certain industries, such as tourism, and to provide comprehensive measures to prevent massive unemployment.

The deputy prime minister said, “The number of new applications for job-seeking benefits last month is expected to greatly increase compared to the same period last year, and we have detected signs that the employment index is slowing down.” He continued to explain. “It is highly likely for adjustments to be made in employment centered on self-employed business owners and storeowners suffering from plunging sales and on temporary and day workers, whose employment is unstable.” Deputy Prime Minister Hong added, “Companies retaining employees and workers securing their jobs is the most important foundation for stable livelihood, so we need sufficient and thorough measures.”

According to a government official, the comprehensive employment plan in response to COVID-19 is expected to consist of four major parts. The first will be measures to maintain employment, helping storeowners to large companies retain their employees instead of laying them off. The government may increase the current employment maintenance fund of 66,000 won per person per day. The second part will be unemployment measures for workers who have lost their jobs. The third will be measures to create more jobs including openings in the public sector. The last part will be measures for the stable living of workers and the unemployed--funding in addition to unemployment benefits and policies to cut living expenses.

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