Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

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

Articles 1 and 2 of the Convention. Overall labour market trends. The Committee takes note of the Government’s report received in September 2013 which includes detailed information in reply to the 2011 observation. The Committee notes that the unemployment rate experienced a slight decrease of 0.5 percentage points, between 2009 and 2012, from 3.7 to 3.2 per cent. The data provided also reflects a decrease in the unemployment rates for youth and women during that same period, respectively of 0.5 and 0.3 percentage points (from 8 to 7.5 per cent and from 3.3 to 3 per cent). The Government indicates that, the number of newly employed people is continuously increasing, despite the economic slowdown. The Committee notes the observations made by the Federation of Korean Trade Unions (FKTU) submitted with the Government’s report, as well as the observations made by the Korean Confederation of Trade Unions (KCTU). The FKTU indicates that the employment rate has been improving but is still below the OECD average and that the gap stands out in the employment of women, youth, and the elderly. Both workers’ organizations indicate that, despite the increase in the employment rate, the quality of employment is not improving. The FKTU believes that the Government, when implementing measures for job creation, should focus on increasing not only the employment rate but also the number of quality jobs. The KCTU indicates that the aforementioned increase results from the expansion of industries with higher levels of precarious employment and from the growth of non-waged workers (for example, self-employed persons). The Government recognizes that efforts should be made not only to achieve the set goal of 70 per cent employment rate by 2017, but also to enhance the quality of employment. It adds that the steady increase in the total number of employed people is a result of that of waged workers; rather, the share of non-waged workers has been declining. The Committee invites the Government to continue to provide an analysis of the labour market trends, taking into account the concerns of the social partners regarding the effectiveness of the employment policy measures implemented.

Job creation measures. In August 2011, the Government set up a National Employment Strategy aimed at achieving an employment rate of 70 per cent by 2017. The Government also announced four grand national employment strategies, namely, pursuing employment-friendly economic and industrial policies; fostering of dynamic and fair work environment; utilizing marginalized work force and strengthening their vocational skills; and, reorganizing the social safety net to encourage work ethic. The KCTU indicates that, far from alleviating the dual structure of the labour market, the National Employment Strategy has contributed to its deterioration. The Committee invites the Government to continue to supply information on the impact of the measures taken under the National Employment Strategy.

Employment generation and deregulation. The Committee notes that, while policies to improve labour market regulations were implemented as a part of the 2011 National Employment Strategy, the Government deems it premature to expect their results in terms of impact on the overall job creation. According to the FKTU, the quality of employment is not improving, as the number of non-regular workers is not decreasing. The Government indicates that it is striving to entrench the practice of employing regular workers for permanent and continuous work, to improve the working conditions of non-regular workers, and to ease discrimination against them. Moreover, it reports that a Guideline for In-House Subcontracted Work was established in July 2011 in order to protect employment stability and to enhance the working conditions of in-house subcontracted workers; 295 workplaces hiring many in-house subcontracted workers were targeted for priority control. The Committee invites the Government to provide in its next report information on the measures implemented in consultation with the social partners to reduce labour market dualism. Please also include information on the results of these measures, indicating whether they have translated into productive and lasting employment opportunities for non-regular workers.

Youth employment. The Government indicates that, as a result of the measures implemented during the 2010–11 period, 73,000 decent jobs were created for young people between 2011 and 2012. The Committee notes that a special committee for the improvement of youth employment was created in cooperation with the public and private sectors. In addition, job creation and career guidance measures have been adopted, namely, the “Youth Employment Academy Business” and the “Yes Programme for Youth.” The Government also indicates that efforts are being made to find businesses for the purposes of job placement. Furthermore, job centres for the youth are being established in colleges for the purposes of job placement; 43 colleges received governmental support in 2012. The KCTU indicates that, despite the various measures adopted by the Government in order to tackle the youth employment issue, the numbers are still declining. It attributes those results to the fact that the measures are short term and performance orientated. The KCTU believes that a long-term intervention to provide decent jobs to young people and to expand companies’ labour demand is necessary, and that active labour market policies based on unemployment assistance and various measures to advance the level of training of young people and to promote their entrance to the labour market should be actively considered. In its reply, the Government indicates that youth employment issues are caused by both cyclical and structural factors in the labour market, changes in the structure of the population of young persons should also be taken into account. The Committee notes that the Government is committed to move towards policies aiming to improve the quality of jobs, to address structural problems in the labour market, and to address the mismatch between labour supply and demand. The Committee invites the Government to provide in its next report an evaluation of the various measures implemented to promote the long-term integration of young persons in the labour market, especially with regards to educated young unemployed persons, as well as other categories of young people having difficulties in finding employment. Furthermore, the Committee invites the Government to provide information on the measures taken in order to address the issue of the inclusion of youth who are not in employment, education or training.

Employment promotion for women. The Government reports that women’s participation rate has experienced a slight increase of 0.4 percentage points, between 2009 and 2012, from 49.4 to 49.9 per cent; whereas, women’s employment rate has increased by 1.2 percentage points, from 34 to 35.2 per cent, during that same period. The FKTU and the KCTU expressed that, while the number of women workers has increased, the quality of their jobs has not improved. The KCTU indicates that, in terms of demand, most of the jobs for women are limited to precarious jobs, and re-entrance in the labour market for those who have interrupted their careers is limited. The ratio of non-regular workers among women is increased, as a result of post career-break jobs; it goes from 47.3, when they are in their twenties, to 61.6 per cent, once they reach their forties. Moreover, the KCTU indicates that, while the ratio of part-timers among women increased from 12.3 to 14.4 per cent between 2006 and 2012, it only increased from 3.9 to 5 per cent among men. The KCTU considers that the most serious problem is the Government’s active promotion of part-time orientated job creation policy to increase the women’s low employment rate. The Committee encourages the Government to seek cooperation with employers’ and workers’ organizations in its efforts to increase women’s participation in the labour market and to evaluate the impact of the various measures implemented.

Employment promotion of older workers. According to the data provided in the Government’s report, the proportion of workers aged 50 and above increased from 24.79 to 34.28 per cent between 2004 and 2012. The Government is implementing measures in order to extend the employment of older workers. The Committee notes that, as a result, the employment rate of middle and old-aged workers (55–64 years of age) increased from 60.4 in 2009 to 63.1 per cent in 2013. The Committee invites the Government to continue to provide data allowing 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. The Government indicates that, since 2007, the Economic and Social Development of Korea has had various successful discussions and agreements, including, among others, the employment promotion of middle and old-aged workers. In addition, the Government has been promoting a regional partnership consultative group in order to discuss issues, such as job creation and the stabilization of labour since 2008. The Government also indicates that it supports the promotion of labour management councils as a core institution for the establishment of productive partnerships. Furthermore, the Committee takes note of the information provided, in the report submitted on the application of the Human Resources Development Convention, 1975 (No. 142), with regard to the subscription of a Tripartite Jobs Pact in May 2013. The Committee invites the Government to include information, in its next report, on the implementation of the Tripartite Jobs Pact and on any other measures taken with the social partners on the matters covered by the Convention.