South Korea’s new government seeking labor reform and private-led growth will slash tax-financed hiring that most went to seniors to aid job data under the former liberal administration.

According to sources from multiple industries on Sunday, the Ministry of Employment and Labor has reached internal conclusion to restructure direct public-sector hiring.

The Ministry of Economy and Finance has been urging government offices to rationalize and streamline spending scheme for next year’s budget to contain the yawning fiscal deficit.

Direct hiring sharply increased under the previous Moon Jae-in government to aid employment. The budget on the scheme nearly doubled to 3.1 trillion won ($2.4 billion) in 2021 from 1.6 trillion won in 2016. The Moon government spent total 11.6 trillion won to create public-sector jobs over the last five years and earmarked 3.3 trillion won spending for this year.

The scheme had been criticized for being wasteful as it cannot make sustainable jobs.

State-funded universities hired helpers to go around classrooms to turn off lights for one.

According to an evaluation by the labor ministry, 36.4 percent of 33 direct job categories required fixing.

By Kim Hee-rae and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]