S Korea plans $3.5bn jobs push

Officials say plan will create 500,000 jobs as economy faces first recession in a decade.

    Global demand for South Korean cars and consumer goods has plunged sharply [EPA]

    "The government will address risks in job markets through an extra budget for jobs and more job sharing programmes," the prime minister's office said in a statement, following the decision reached at a special high-level meeting on the economic crisis.

    Supplementary budget

    The money will come from a supplementary budget of about 30 trillion won ($22bn) the government is expected to put before parliament next week.

    Of the total, 4.9 trillion won ($3.48bn) will be used on support measures to pror up the job market including creating temporary jobs.

    The budget for claims arising from job cuts will also be expanded by 1.6 trillion won ($1.15bn) in response to soaring unemployment.

    According to the government the unemployment rate in February rose to 3.9 per cent, the highest in almost four years.

    The South Korean finance ministry has forecast the export-reliant economy will shed an average of 200,000 jobs each month from year-earlier levels.

    The country's export-driven economy is teetering on the edge of its first recession since 1998, with demand for cars and consumer goods plunging sharply.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.