President Moon Jae-in's policy advisory panel said Tuesday that the government will expand hiring of young people in the public sector, the latest in a series of efforts to create jobs.

Currently, public companies and other public agencies are required by law to employ a set number of unemployed youths each year.

The government will raise the mandatory ratio of hiring of unemployed youths in the public sector to 5 percent, beginning next year, the State Affairs Planning Advisory Committee said.

The move underscored South Korea's efforts to create jobs for young people amid a high jobless rate.

The unemployment rate for young people, aged between 15 and 29, was 9.3 percent in May, much higher than the overall jobless rate of 3.6 percent, according to government data.

Job creation is one of the top priorities by President Moon Jae-in.

The government will push to provide incentives to big private companies in case of the additional hiring of young people, the committee said, without elaborating.

It said the government will provide up to 60 million won ($52,000) to a small firm in promising sectors so they can pay for the wages of their employees for three years.

An official handing the issue at the Ministry of Employment and Labor said the government is considering providing wages for up to three employees in case a firm hires nine young people, though no final decision has been made yet. He asked not to be identified, citing policy. (Yonhap)