Strengthening Active Labour Market Policies in Korea

Review of Korea’s Progress in Achieving an Inclusive Labour Market

This report discusses the progress that Korea has made in recent years towards achieving a more inclusive labour market. The country has focused on increasing the capacity and availability of active labour market policies (ALMPs) and integrating various services and service channels into one-stop shops. The report emphasizes the importance of aligning these efforts with the Sustainable Development Goals (SDGs) to ensure that no one is left behind.

Increased Allocation of Resources to ALMPs

In line with Korea’s commitment to fostering an inclusive and well-performing labour market, resources allocated to ALMPs have significantly increased in recent years, reaching 0.6% of GDP in 2021. While the country offers various types of ALMPs, the majority of resources are directed towards direct job creation programs, accounting for 0.18% of GDP or 30% of all ALMP spending. However, there is a need to diversify the ALMP portfolio by allocating more resources to other types of ALMPs, such as training for youth and older jobseekers, to address their specific needs.

Targeting Vulnerable Groups and Creating Synergies

Korea targets most of its ALMPs to groups vulnerable to labour market disadvantage, ensuring that support is provided to those who need it most. The country has also established a large number of Employment Welfare Plus Centres, where employment counsellors and social workers from different organizations collaborate to provide comprehensive services. Enhancing cooperation within these centers through staff training, systematic cooperation processes, and dedicated teams consisting of staff from different institutions is recommended.

Integration of Digital Channels in ALMP Delivery

Korea has made remarkable progress in integrating digital channels into ALMP delivery. The Ministry of Employment and Labor and the Korea Employment Information Service have taken a comprehensive strategic approach to digitalization, resulting in the full integration of digital employment services for jobseekers and employers. The country has adopted innovative tools and state-of-the-art technologies to create an integrated, automated, personalized, and data-driven ecosystem of digital employment services. The report suggests further improvements to achieve a better user experience and value-added to Public Employment Service (PES) clients.

Key Policy Recommendations

• Diversify the ALMP portfolio by allocating funds to other types of ALMPs, particularly training programs for youth and older jobseekers.
• Enhance cooperation within Employment Welfare Plus Centres through staff training and systematic cooperation processes.
• Continue to extend cooperation with employers by assisting them with vacancy descriptions, utilizing digital tools, and providing post-placement support to hire vulnerable jobseekers sustainably.
• Establish key principles and frameworks for the long-term digitalization strategy of the PES and align short to medium-term action plans with the strategy.
• Develop a framework to optimally and consistently manage service channels to jobseekers across Korea, considering the type and objective of the specific services and target groups.
• Increase the accessibility of digital tools and services by identifying jobseekers with low digital skills early and ensuring that those with lower digital skills or other constraints are not left behind.
• Continue developing the one-stop shop of digital employment services by strengthening jobseeker profiling, facilitating online training, and enhancing user experience and interactivity through the use of general AI.
• Monitor and evaluate ALMPs and digital solutions comprehensively and systematically to understand their impact and ensure efficient use of public funds. Efforts should be made to link data from administrative registers for digital services and automate monitoring and evaluation activities.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 17: Partnerships for the Goals

The article discusses Korea’s progress in achieving a more inclusive labor market, which is connected to SDG 8. It also mentions the allocation of resources to active labor market policies (ALMPs) to support vulnerable groups, which relates to SDG 10. Additionally, the article highlights the collaboration between different organizations and the use of digital channels in ALMP delivery, which aligns with SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
• Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
• Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

The article emphasizes the need to enhance employment opportunities and support for youth and older jobseekers, which relates to Target 8.5. It also highlights the importance of adopting policies to achieve greater equality, which aligns with Target 10.4. Additionally, the article mentions the collaboration between different institutions and the involvement of employers in the labor market, which connects to Target 17.17.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities
• Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers
• Indicator 17.17.1: Amount of United States dollars committed to public-private partnerships

The article does not explicitly mention these indicators, but they are relevant for measuring progress towards the identified targets. Indicator 8.5.1 can be used to assess the equal pay for work of equal value, Indicator 10.4.1 can measure the labor share of GDP to evaluate equality, and Indicator 17.17.1 can track the financial commitment to public-private partnerships.

4. SDGs, Targets, and Indicators

Source: oecd.org