Companies seeking employment grants increase six-fold amid economic slump

SEOUL, Dec. 3 (Yonhap) -- The number of companies applying for government
employment grants increased six-fold in November from a year earlier amid growing
fears of massive job market contraction, the Ministry of Labor said Wednesday.
A total of 1,312 companies applied for the government grants to retain jobs in
the past month, a sharp increase from 210 in November last year, the ministry
said.
The grants are provided to both small and large companies to prevent layoffs.
Small companies receive up to three quarters -- for large firms, up to two thirds
-- of salaries in grant form for employees who are forced to take paid leave.
"Workers of small companies are in the most difficult situation. The government
should encourage them to use this system rather than lay off the workers and
should actively provide the grants," Minister of Labor Lee Young-hee said in a
meeting with senior employment officials nationwide.
The November figure was three times more than the 446 firms a month ago. The
applicants, who by policy cannot be identified, included conglomerates,
officials said.
Reports say large-scale layoffs are certain due to anemic domestic demand and
weak exports sparked by global economic downturn.
Of South Korea's 30 state-invested major companies, only 11 companies plan to
hire a combined 946 employees this year, down a whopping 66.7 percent from 2,839
last year, according to the Ministry of Strategy and Finance.
The number of new jobs created in October fell under 100,000 for the first time
in 44 months, according to government data.
hkim@yna.co.kr
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