In response to concerns over a sharp deterioration in employment conditions, areas that urgently need to respond will be designated as "employment crisis proactive response areas" and will receive support from the Ministry of Employment and Labor. The Ministry announced on the 31st that it will implement a system for employment crisis proactive response areas.
Currently, the Ministry is designating "employment crisis areas" to provide support. However, to utilize this system, strict criteria must be met, including a 5 percentage point decrease in the number of insured individuals compared to the national average, a 5% decrease in the number of insured individuals, a 20% increase in the number of new applications for unemployment benefits, and a 5% decrease in the number of business sites. Therefore, there have been criticisms that there are limitations to proactive responses.
The newly established proactive response area system allows the Minister to designate support areas if reasons such as a continuous decline in the main industry employment in the region for more than three months, a 10% adjustment in employment by major leading companies, or unexpected shutdowns affecting more than 10% of businesses in the area are met. The head of the local employment and labor office can propose the designation to the Minister, and the designation period is up to six months.
If designated as an employment crisis proactive response area, support can be received in the form of employment maintenance subsidies, vocational training support projects, and living stability loans.