The Paraguayan government has announced an ambitious plan to address youth unemployment and revitalize the economy. In his Labor Day address, President Santiago Peña officially launched the 'EmpleaPy Joven' (EmployPy Youth) program, stating that it aims to encourage the first employment of young people and expand youth employment by reducing the burden on companies.

The core of this program is to provide companies that hire young people aged 18 to 23 on a permanent basis with government support covering 18% of their social security contributions. In particular, the plan is to strengthen support for small and medium-sized enterprises (SMEs), which are major sources of youth employment, thereby expanding job opportunities for young people. The government will directly contribute 4,701,156 guaraníes (approximately $650 USD) per person annually to the Social Security Institute (IPS), thereby reducing the burden on companies and encouraging the hiring of young people in permanent positions.

The government aims to transition 10,000 young people to permanent employment within one year through this program. To achieve this, a total budget of 47 billion guaraníes (approximately $6.5 million USD) is planned. Additionally, at least 40 hours of technical training will be provided to enhance the job skills of young people, with the National Employment Promotion Service (SNPP) and the National Labor Education and Training System (Sinafocal) responsible for the training.

This program goes beyond simple financial support and simultaneously pursues the social integration and economic development of young people. The government plans to prioritize job opportunities for young people from vulnerable groups and establish a transparent and efficient recruitment system by connecting young people and companies through an online platform called 'EmpleaPy'.

However, some are raising concerns about the effectiveness of this program. Questions remain as to whether the financial support will actually lead to increased hiring by companies and whether the target of 10,000 people can be achieved. Furthermore, it is necessary to verify whether the program can provide quality jobs that young people desire.

The Paraguayan government plans to transparently disclose the progress of the program and continuously improve it through ongoing evaluation to dispel these concerns. It also intends to actively solicit the opinions of young people to maximize the program's effectiveness.

Youth unemployment is a serious social problem not only in Paraguay but also worldwide. It remains to be seen whether this initiative by the Paraguayan government will give hope to young people and have a positive impact on the country's economic development.