local approaches in skills mismatch: the case of korea

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Jun, MyungSook (Professor, Chonnam National University)

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Economy & Finance


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This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.

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Page 1: Local Approaches in Skills Mismatch: the Case of Korea

Jun, MyungSook (Professor, Chonnam National University)

Page 2: Local Approaches in Skills Mismatch: the Case of Korea

Korea’s vocational education and training system*

Korea’s vocational education and training (VET) system is composed of vocational high schools, junior colleges and polytechnic colleges.

Most young people in Korea enter high schools (88.5% of 15-19 year olds), either general (75.5%), vocational (23.5%).The majority of graduates from both types of high schools advance to post-secondary programmes.

------------------------------------- *Source: OECD LEED (2014), Employment and Skills Strategies in Korea, forthcoming.

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Page 3: Local Approaches in Skills Mismatch: the Case of Korea

1) Junior colleges, which enrol over 50 times more students than polytechnics are predominantly private (around 95%) whereas polytechnic colleges are public, run by the MOEL.

2) The polytechnic college sector is much smaller than the junior college sector, and provides vocational education in a limited number of technical fields. All polytechnics are public and charge low tuition fees. About 15 000 students are enrolled in the 11 existing polytechnic colleges

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Page 4: Local Approaches in Skills Mismatch: the Case of Korea

Education is highly valued in Korean society, and this may have contributed to the high level of over-qualification found amongst many Korean workers

A survey of 150 employers revealed that 25% perceived that there was a gap between what employed students had learnt and what was required by their companies (2012)

The mismatch between skills supply and demand risks leading to the wasteful use of resources, both for society as a whole through an inefficient education system and for the students investing in education with the goal of enhancing their future employment and wage prospects.

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Gaps between the VET system provision andSkills Needed in the Labor Market

Page 5: Local Approaches in Skills Mismatch: the Case of Korea

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Local ApproachesLocal Approaches

Figure 1. Understanding the relationship between skills supply and Figure 1. Understanding the relationship between skills supply and demanddemand

Source: Froy, F. and S. Giguère (2010), “Putting in Place Jobs that Last: A Guide to Rebuilding Quality Employment at Local Level”, OECD Local Economic and Employment Development (LEED) Working Papers, No. 2010/13, OECD Publishing, Paris.

Page 6: Local Approaches in Skills Mismatch: the Case of Korea

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Figure 2. Skills supply and demand, Korea, 2010Figure 2. Skills supply and demand, Korea, 2010

Page 7: Local Approaches in Skills Mismatch: the Case of Korea

1. Korea Job World

Korea Job World is an interactive vocational experience centre located in the city of Seongnam-si in the Gyeonggi-do province, providing career guidance to the public in general, and young people in particular. It is designed to help people obtain a realistic view about possible professional choices and prospects, and to give career advice based on individual interests and aptitude. Visitors are guided through three main halls:The World Hall, Job Experience Hall, and the Career Design Hall.

Korea Job World was opened in August 2012 after a period of pilot operation, and now hosts around 3 000 visitors a day.

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Policy Measures

Page 8: Local Approaches in Skills Mismatch: the Case of Korea

2. Programme for competency-based hiring (2013)

The MOEL has started disseminating core competency assessment models to 30 companies on a trial basis. Core competency assessment models enable companies to select workers on the basis of competencies instead of qualifications that not are relevant and/or necessary for the jobs to be performed. Under this pilot project, the assessment model is for three job groups – production management, business support and teller services in financial and insurance businesses – and will be implemented in the 30 companies selected through public invitation.Each of the selected firms will be offered consulting services and interviewer training tailored to its circumstances. They will also be assisted in applying assessment models in their actual recruitment processes

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Policy Measures

Page 9: Local Approaches in Skills Mismatch: the Case of Korea

3. Local-based Job Creation Programme

The local-based job creation support programme was created to help local NGOs, academic institutions, workers’ and employers’ organisations, and local governments conduct research on their local labour markets and develop creative job creation projects. In 2012, under the local-based job creation support program, the government selected 276 local projects through an open bidding process and provided them with funding of KRW 30.9 billion. Among the selected projects, Training and HRD projects accounted for the biggest portion with 241 projects, followed by 12 “packaged projects”, 8 research projects and 15 forum projects. Furthermore, with a view to strengthening the connection with “the local job creation strategy notice system”, the government began, in 2012, to provide financial support to local governments with good records in relation to the system: an additional KRW3.2 billion was granted to 36 local governments to finance their local-based job creation projects.

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Policy Measures

Page 10: Local Approaches in Skills Mismatch: the Case of Korea

Thank you!Thank you!

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