Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Employment Policy Convention, 1964 (No. 122) - Republic of Korea (Ratification: 1992)

Articles 1 and 2 of the Convention. Overall labour market trends. The Committee notes the Government’s report for the period ending in May 2010, which includes replies to previous comments and detailed labour market data indicating that the rate of unemployment was 3.6 per cent in 2009 (0.4 percentage point higher than in 2008), a first such increase since 2005. The Committee further notes the comments submitted by the Korean Confederation of Trade Unions (KCTU) stating that the nation’s capability to create jobs has been deteriorating as the economy followed a pattern of economic growth without employment generation. The employment rate was close to 59 per cent in 2009, and the figure has not changed much for years, posing employment issues. The unemployment rate was 4.1 per cent in March 2010, but the KCTU observes that more than 3 million workers are underemployed, including a very important number of young workers. The Federation of Korean Trade Unions (FKTU) has also observed that the Government initiatives to boost employment through growth and labour market flexibility were identified as a cause of the global economic crisis. The Committee invites the Government to include in its next report, as it did in the past, an analysis of the labour market trends taking into account the assessment made by the social partners of the effectiveness of the employment policy measures implemented.

Job creation measures. The Committee notes from the report that job creation projects directly funded by the Government created 810,000 jobs, including major public works programmes such as the Hope Work Project which employed 250,000 people from low-income families. The Government indicates that despite a growing number of jobseekers due to the economic crisis and programmes implemented to provide vocational skills development, some workplaces had trouble finding suitable workers. The Committee also notes that under the national strategy and five-year plan for green growth established in July 2009, the Government laid the foundation for the creation of decent green jobs by monitoring working conditions and improving work environments, including the introduction of new technical qualifications to meet the needs of green industries. The number of green jobs was estimated at 610,000 in 2008 and the Government expects it will rise at an annual average of 6 per cent from 2009 to 2013, reaching about 810,000 people in 2013. The FKTU indicates that 78 per cent of the projects announced are public works and construction projects, but the funds allocated for research and development for the green economy appear to be limited when taking into account the expectations. The Committee invites the Government to continue to supply information on the impact of the measures taken to promote full employment within a framework of a coordinated economic and social policy.

Employment generation and deregulation. The KCTU expresses concern to many deregulation initiatives considered as job creation measures by the Government. It claims that the Government is revising laws and labour market institutions to increase non-regular workers and dispatched workers, facilitate part-time work and expand private employment services. The Committee invites the Government to provide information on the impact and results achieved in terms of productive job creation by new labour market regulations.

Youth employment promotion. The Government indicates that 426,000 young persons were having difficulties in finding employment in May 2010, representing a youth unemployment rate of 6.4 per cent, compared to 8.1 per cent in 2009. The Government launched measures aimed to provide short-term jobs to young people and enhance their employability. The New Start Project provided young people with comprehensive individually specialized employment services. The FKTU indicates that one in every four young persons is in fact out of work and claims that the youth employment measures implemented by the Government produced poor results when looking at the total amount of funds invested. It further indicates that public institutions and local public enterprises do not comply with their obligation under the Special Act on the Promotion of Youth Employment, as amended in June 2010, to hire at least three unemployed young people per year for every 100 workers employed. The KCTU denounces the significant reduction of decent jobs for young people, as jobs created by the Government for the youth have been low-wage or temporary jobs on a less than one-year contract. The Committee asks the Government to provide in its next report data which will allow assessing the effectiveness of the various measures implemented to promote the long-term integration of young persons in the labour market. The Government might also wish to hold appropriate consultations with the social partners and representatives of the stakeholders concerned in overcoming the difficulties encountered to obtain lasting employment for young people. In this regard, the Committee recalls its concluding remarks in the 2010 General Survey concerning employment instruments, where it was noted that there is a growing problem of unemployment among educated workers, particularly young university graduates, who are unable to find secure employment commensurate with their skill level. Not only are their skills underutilized, but this pattern of casual jobs can prove detrimental to their lifetime career progression. The Committee encourages the Government to develop job creation and career guidance policies targeted at educated young unemployed persons, as well as other categories of young people having difficulties in finding employment.

Employment promotion for women. The Committee notes that the female participation rate increased to 50.5 per cent in May 2010 (6 percentage points higher than in 2009). The Government also reports on various measures to ease childcare burden on working women and to support reconciliation between work and family life. It also mentions a draft of a five-year plan to prepare for a low fertility and aging society, to be adopted after consultations and a public hearing. The FKTU indicates that, in its effort to promote decentralization, the Government is delegating its responsibilities relating to equal employment to local governments. The KCTU claims that regular female employment continues to fall. The Committee asks the Government to provide in its next report data which will allow it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for women.

Employment promotion of older workers. The Government indicates that it supported 274,849 people by providing subsidies for employment promotion for older workers and 1,497 people in 224 workplaces by paying allowances to compensate for wage cuts under the wage peak system. The Committee notes that a total of 3,031 people were employed after completing short-term adaptation for middle and old-aged people and that the employment rate for people aged 55–63 increased from 57.8 per cent in 2003 to 60.4 in 2009. The FKTU indicates that in 2003, people retired from their major career at 54 and then spend some 13–14 years in their second career with poor working conditions before complete retirement. The focus of the measures targeting those aged 55 or above is placed on implementing job retention and there are few job creation policies for older workers. The FKTU further notes that the recommendations included in the Act on Prohibition of Age Discrimination in Employment and Aged Employment Promotion were not accompanied by penal provisions and do not work effectively as measures for older workers. The Committee asks the Government to include data which will allow it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for older workers.

Article 3. Participation of the social partners. In reply to previous comments, the Government summarized in its report the agenda of the meetings held by the Regional Tripartite Consultative Body. The FKTU indicates that only government agencies participated in the process of setting up a national employment strategy without involving the representatives of the workers’ organizations or the tripartite Economic and Social Development Commission. The KCTU asks for further measures to improve the quality of employment, creation of decent jobs in the public and social service sectors, building employment protection and new infrastructure for the public employment services. The Committee invites the Government to provide information in its next report on how consultations with the social partners have been used in the formulation and implementation of the employment policy. In this regard, the Committee asks the Government to focus on the points raised in this observation and the procedures which enable it to take fully into account the views and experiences of persons affected by employment policy measures.