Multiple issues, including the sluggish economic growth in the wake of the global financial crisis and the imbalance between university education and later job demands, have recently been aggravating youth unemployment. In addition, women, the disabled, the elderly, high-school graduates without college experience, and other vulnerable populations of Korean society also face difficulties in landing a job. In particular, as public institutions and some businesses plan to extend their retirement age to 60 from 2016, implying the high possibility of reducing the number of new recruits, concerns are rising over whether this will further exacerbate the unemployment issue.

   Public institutions are expected to lead the way in spreading the effect of the governmental polices related to employment into the private sector. Therefore, it is necessary to assess if the employment expansion policies that the government assigns to public institutions result in the addition of new recruits and social equity jobs.

   This report assessed the employment management policies of public institutions in terms of major issues in three categories: job security and expansion of new recruits, control of the number of employees, and social equity in employment.

   According to the assessment, the salary peak system, once introduced at public institutions as the government’s drive, will help reduce the side effect of seniority-based pay, i.e. the growing imbalance between labor productivity and wages moving up the pay ladder. Still, it is essential to supplement the system, including through enhancing governmental financial support and overhauling pay structure, to help public institutions meet the target numbers of new recruits that are set up in accordance with governmental recommendations. It is necessary to postpone the implementation of the Quota System for Youth Jobs until the effect of the retirement age extension becomes reliable and allow the quota as exceptions of the rules on total employment size.

   For the policy to control the total number of employees, the diagnosis of the organization and human resources of public institutions needs to be more stringent through a coordination system among them, and those with high marketability should be guaranteed autonomy in managing their human resources.

   In terms of social equity in employment, some public institutions that have continued to pay charges for not complying with the employment quota for the disabled need to make an effort to amend their practices. It is also pointed out that the institutions with difficulties in directly hiring those with disabilities due to their structural features should actively utilize the Levy Cut on Engaging in Promoting Employment of Those with Disabilities.