SEOUL, June 5 (Xinhua) -- The South Korean government announced its first supplementary budget plan under President Moon Jae-in on Monday to create jobs, especially in public sectors.
The extra budget plan worth 11.2 trillion won (10 billion U.S. dollars) was approved during the cabinet meeting, according to the Ministry of Strategy and Finance.
It was scheduled to be submitted to the National Assembly Wednesday. If approved in the extra parliamentary session this month, the budget was expected to be implemented from next month.
The extra budget was anticipated to create about 71,000 jobs in the public sector, including 12,000 government officials, and some 39,000 jobs in the private sector.
It marked the third straight year that the government allocated a supplementary budget worth over 10 trillion won.
This year's extra budget was not expected to influence the fiscal soundness as the budget would be financed by a rise in tax revenue.
On his campaign trail, President Moon pledged to become a "job-creating" leader, indicating that his economic policy would be centered on employment.
Moon vowed to focus on an income-based economic growth by creating more decent jobs and reducing irregular workers.
After his inauguration on May 10, the new president ordered the installation in his office of the so-called "bulletin board" on the labor market conditions, instructing officials to draft the policy measures for job creation.
The unemployment rate among those aged 15-29 surged to 11.2 percent in April, while the number of youths unemployed reached 1.2 million. The so-called sentiment jobless rate among youths reached 23.6 percent in April.
The official unemployment rate refers to those who were immediately available for work but failed to get a job in the past four weeks despite efforts to actively seek a job.
The sentiment rate adds those who are too discouraged to seek a job, those who work part-time against their will to work full-time and those who prepare to get a job after college graduation to the official jobless rate.
Amid the worst labor market conditions, the younger generation complained that they are living a hell-like life. According to some local media estimation, almost half of college graduates failed to find a regular job.
A senior finance ministry official told a press briefing that it would mark the first time that the government drew up the extra budget plan only for job creation.
The government sought to reinvigorate the faltering private consumption by dragging down the high jobless rate especially among the younger generation.
More job creation would lead to an income expansion, helping bolster the consumption. Fewer irregular workers would also help narrow the income inequality with regular employees.
The job creation in the public sector would mainly come from firefighters, police officers, social welfare officials and nursing teachers in a bid to enhance the quality of social services and strengthen people's safety as well.
Financial assistance would be expanded to the elderly who suffered from Alzheimer's disease and other severe disabilities.
The percentage of salary offered to mothers who are on childcare leave would be raised from 40 percent of their ordinary wages to 80 percent as part of efforts to help increase the low birth rate.
