Achievements & Tasks for the Employment Policies after the Asian Financial Crisis

  • 2010-04-26
  • 366
    After experiencing the Asian financial crisis, it has been emphasized to expand Ko-rea’s labor-market policies in an active manner. According to the economic condi-tions for each period, there has been some difference in the point to emphasize employment policies. Right after the financial crisis, the public labor program and the unemployment insurance system should be handled rapidly against increasing number of the unemployed. Employment countermeasures for each industrial field has been underlined since 2003. Accordingly, it has been provided that employment countermeasures for the young with 2.5 percent percent point increase in unem-ployment rate compared to the time before Asian financial crisis. Also, the budget for creating social service jobs has been jumped through the financial program thanks to the growing interest level in social service field. Employment policy main-ly focused on creating job by growth from current government, has been converted into active countermeasure policy in the face of the financial crisis. As a result, they now spares no effort on both maintaining and sharing jobs by executing following programs such as the public job creation and the internship program to increase the number of short-term jobs and to expand the subsidies for job maintenance. Also, support for social service job has been continuously provided. Meanwhile, when comparing the amount of expenses for the active labor-market policies since the Asian Financial Crisis with those of other OECD countries, it can be said that the amount of expenses spent by the Korean government is extremely lower than those of others. Therefore, Korea can be classified as the country where put an emphasis on the autonomy of the labor-market.

    Despite the government’s effort to carry out employment policies in direct or indirect way, there has been no improvement in the employment index. So, we sug-gest the future tasks for the employment policies. First of all, as the industrial struc-ture moves from the manufacturing to the service industry, for the purpose of in-creasing the number of employees in the service sector, it is necessary to have a long-term countermeasure for productivity improvement and the market expan-sion for each specific service field. Next, it is needed to evaluate achievements of the short-term employment policies in a systematic manner, since such programs like ‘public and the hopeful labor programs’ could have some limits in regard to job creation, even if they could prevent the sudden drop of employment and preserve certain income level for the disadvantaged class. Thirdly, although it is thought to be certain degree of financial support is required for creating job for social services sector, policy consideration for job maintenance is essential, since there seems to be some problems like decrease in continuity of jobs. Lastly, it is also necessary to offer more internship programs and change the recruitment custom, in order to solve difference between the demand and the supply of labor.