Basic Report

In recognition of the importance of the role of local governments on local job creation, this study investigated what local governments must do and the efficient method as well as financial support and its management plan in order to strengthen the role of local governments. Most of the countries throughout the world create direct jobs through the government sector by expanding the budget, and create new jobs by providing new public services such as social services, and at the same time sustain them by supporting companies. Moreover, it is planning the mid-long term projects for green growth and new growth engines in terms of the paradigm shift in economy and society, and planning future job creation by investing resources through this. Since the government’s job creation policy is finally implemented in local areas, the role of local governments on job creation is significant. However, in the case of Korea, the central government has established a plan on regional development policy or job creation, while local governments have only been responsible for its implementation, therefore the role of local governments was not considered important.The process of this study is as follows.(1)Firstly, theories on job creation and overseas recent case studies : The theories include the concept of job creation and the role of local governments on job creation while the overseas recent case studies contain the job creation policy of the Obama administration in the US, Japan’s recent employment measures and the central government’s financial support, and Britain’s trends on job creation.(2)Secondly, chronological transition on Korea’s job creation policies and the current status and problems of the current administration’s core policies on job creation such as Green New Deal, employment measures through the budget, public employment project, Green jobs creation, and social employment scheme: This part explores the problems and limits in promoting local governments’ job creation projects rather than the issues of an individual project on the job creation policy in Korea, because local governments have a crucial role in promoting the job creation project and it needs to look over inadequate or necessary functions.   The reasons why local governments were not able to take on a role in creating jobs locally are condensed into four types.(1)Firstly, the central government has controlled the plan and implementation on the job creation.(2)Secondly, the project failed in creating jobs according to the features of each region and custom job creation, the local infrastructure or living conditions were more focused instead, and it resulted in unstable jobs due to the failure of the custom job creation project.(3)Thirdly, a specific project was promoted as a secondary effect but further financial support related to job creation was not provided.(4)Lastly, as there is no job creation organization performance measurement on local job creation was not managed, and government-private sector cooperation system on a job creation project was not established well. Besides, information relevant to job creation was managed and provided by the central instead of local governments.In conclusion, in order to promote the job creation efficiently this study proposes that local governments need to strengthen the job creation related functions and promote a project considering local characteristics. Moreover, financial support coupled with job creation is to be provided and at the same time, oranizations and information systems are to be established to promote the project.