South Korea’s labour market urged to adjust to employment uncertainty

Job training and reskilling should be expanded to the elderly and workers with unstable jobs, while more support should be provided to startups and younger organisations to help them create more jobs, said the Korea Chamber of Commerce and Industry (KCCI).

To address the changing needs of the labour market, firms are also encouraged to compensate employees according to the nature and difficulty of the work they engage in and allow more flexible working hours. 

According to a new report by KCCI, South Korea is projected to face a bleak employment outlook next year, amid widespread recession fears and corporate belt-tightening across industries.

The country’s labour market is in need of fine-tuning, KCCI highlighted. Despite industry-wide demand for IT specialists, the nation lacks workers with such skill sets. With automation increasing in face-to-face services, unemployment in the industry is also rising. 

READ: College graduates in South Korea not actively seeking employment

“Facing weaker profitability and tighter capital markets, companies are expected to reduce new hires and adjust their manpower infrastructure, making it difficult for job seekers to get a job,” said Kim Cheon-gu, a researcher at KCCI, reports The Korea Herald.