0 Myungsoo Park, Ph.D. (KEIS, Korea) 2009 WAPES Asia & Pacific Region Workshop 25 November 2009 Seoul, Korea Myungsoo Park, Ph.D. (KEIS, Korea) 2009 WAPES Asia & Pacific Region Workshop 25 November 2009 Seoul, Korea

1 Recent labor market situation Major employment service policies Role and performance of PES

2 Current labor market situation Employment crisis by economic depression

3 ※ As of Oct Unemployed (744 thou.) Unemployment Rate Labor force (24.6 mil., 61.8%) Wage workers ( 16.7 mil, 70.0%) Non-wage workers including self-employed (7.2 mil, 30.0%) Employed (23.9 mil.) Regular 57.7% Temporary & daily 43.3% Current labor market * All ages: 3.2% * Age 15~29: 7.5%

4 Rapidly deteriorating employment in 2009 Employment increase rate (compared to same quarter a year before) (%) Urgent need to provide both welfare and jobs to the rapidly increasing unemployed Source) National Statistical Office

5 Youth labour force gradually decreased Self-employed decreased Youth w/ difficulty in getting jobs reached around 970,000 Job market would get worse with 460,000 new BA’s expected in spring 2010 From 3Q 2008 to 3Q 2009, self-employed decreased by 276,000, while wage-workers increased by 356,000 Difficulties in areas of wholesale and retail trade, foods and lodging industries

6 Three problems to solve ‘Preparing employment' decreased, while ‘Doing nothing' increased Causing slight increase in unemployment rate, accompanying big increase in the size of not-in- labor- force SME’s having trouble to hire proper employees (86,000 unoccupied positions in second half of 2008) Support rapidly increasing unemployed, who do not have enough assets to survive

7 Active employment security action Major employment service policies - Employment Securities Policy - Refining the system for emergency counterplan

8 1. Support for job preservation Mobilize social movement to minimize lay-offs by employer self-regulate wage increase by union * Increase subsidy rate : 2/3 → 3/4 (SME’s) 1/2 → 2/3 (Large-size enterprises) * Training : Max. 20 hr(4 hr/day) * Duration of training : 180  270 days. Job preservation subsidy by Govt. through temporary shutdown and leave (650,000 persons )

9 2. Emergency employment support program Outplacement service for terminated workers by restructuring Subsidy for company who provides outplacement services (covers the cost of up to US$ 2,500 for 1 person) Subsidy for company who provides outplacement services (covers the cost of up to US$ 2,500 for 1 person) Public Works projects Greatly increase social works and emergency job (15,000 persons) -Improvise public projects with no-delay hiring -Overarching management of social works projects through cooperation of several ministries (65 projects over 13 Ministries, managed by one database)

10 Training for unemployed Increase training for the unemployed (150,000 persons) Individual Training Account Service -More flexibility allowed in management of training expenditures -Deregulation in related with commissioned training and evaluation of training organization Training loans based on living costs to allow individuals to concentrate on training (16,000 person) Increase training for the unemployed (150,000 persons) Individual Training Account Service -More flexibility allowed in management of training expenditures -Deregulation in related with commissioned training and evaluation of training organization Training loans based on living costs to allow individuals to concentrate on training (16,000 person)

11 Youth Internship program 3. Intensive investment on youth To facilitate the employment of youth (25,000 person) * Subsidy of salary for 6 months to company employing youth interns * 6 more months of wage with the intern hired as a regular worker To facilitate the employment of youth (25,000 person) * Subsidy of salary for 6 months to company employing youth interns * 6 more months of wage with the intern hired as a regular worker Reorganize training IPolitech University * 64 dept., with 9,300 graduates from in an area of green tech. and new growth industries, e.g., adopting nanotechnology Provide highly successful training courses such as web based machine control for degree-holder unemployed

12 4. For unemployed and working poor Lend cost-of-living loan to unemployed long-term low interest loan, for covering living, medical and funeral costs (9,000 families) Provide wages for workers of bankrupt company and overdue wages (48,000 persons) Job-training single-mom unemployed (24,000 persons) Support for small shop operation -Increase the amount of loan with lower interest rate (7 mil. won → 10 mil. won) -Training for back-to-work women (5,100 person) -Establish "Work Center for Novice Women workers" (50 center)

13 Fast growing role in labor market since its launch Major employment service policies Role and performance of PES

14 Starting to provide one-stop service for tripartite strategic functions in 1998 Integrated Employment Service

15 Job centers : core of the network - Offering off-line one-stop service - Administering on-line postings - Key link among Ministry, local govt., private agencies & colleges Entrusting Vocational training Cooperation Center Entrusting Services to the private sector Cooperation Center (MOU) Dedicated center (state-established and private-operating) Employment Service Network

/1998 Vacancy registration 4171,250300% 000sPlacements % Dependent Employment 12,29616,206132% Placements/ Reg. vacancies %P % Reg. vacancies/ Dep. employment %P Placements/ Dep. employment %P Work-Net: Performances Rapid progress in filling registered vacancies Though small yet, fast increase in share of labor market PES role since beginning Source) KEIS

17 Cooperation with private services 7,300 private agencies (2008) 2.4 staffs on average mostly service for temporary or daily workers Launch rating system of best-practices and give incentives to the certified agencies Expand contract-out services -19 agencies certified (2008) -39 agencies executed collective counsel program -Centers for vulnerable groups matched jobs with 40,307 positions (2008)

18 Work-Net( provides a "one-stop online recruiting services" for both job-seekers and businesses. Government has launched new program of employment services, by helping recruiting workers for companies. One-stop online recruiting services 1.Demand Recruitment 2. Job Vacancies 4. Listing 3. Application 5. Interview 6. Hiring Business Job Seeker

19 Link School to Work (1) (Cyber Career Education Center) E-learning website for for college students, career development program for counselor, knowledge & technique development course for career guidance Avg. # of visitors: 250/day (started in Mar. 2009)

20 Link School to Work (2) Informative list of 660 occupations 210 college majors combination of majors with matching occupations Providing on-line career counseling Avg. # of visitors: 6,200/day (as of May 2009) (Korea Network for Occupations and Workers)

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