This study overviews the current government-funded job program policies in Korea, and investigates the impacts the various policies might have on the employment rate and the unemployment rate. One of distinctive features in the Korean labor market policy is its heavy reliance on direct job creation programs whereas other types of programs such as public employment services and vocational training are quite negligible. Analysis using the OECD cross-country data shows that direction job creation programs are the least effective policy measures both in short run and in long run. In contrast, programs such as public employment services and job training turn out to be helpful in improving labor market performances. These findings suggest that the government should reconsider the excessive allocation of resources to direction job creation programs by directing more to public employment services and job training programs. At the same time, family friendly labor practices such as part time jobs and child care services could greatly improve Korea’s disappointing female labor market participation.