Back to Work
Workers who are involuntarily displaced from their jobs can face long periods of unemployment. Wages also tend to be lower once they find a new job, especially when they are unable to find a new job in the same occupation as their pre-displacement job or in occupations using similar skills. Helping displaced workers back into work quickly and minimising the income losses they face is therefore an important challenge for employment policy. This series of reports provides new empirical evidence from a comparative perspective on the incidence of displacement and the risk displaced workers subsequently face of a long spell of unemployment and large wage losses when re-employed. It also identifies the main labour market programmes providing help to these workers and assesses how adequate and effective they are. Policy recommendations for further action are presented.
Nine countries are participating in the review: Australia, Canada, Denmark, Finland, Japan, Korea, New Zealand, Sweden and the United States.
Korea: Improving the Re-employment Prospects of Displaced Workers
- 02 May 2013
- 9789264189225 (PDF) ;9789264185814(print)
In Korea's dynamic labour market, job displacement (involuntary job loss due to firm closure or downsizing) affects many workers over the course of their working lives. Some workers are more vulnerable than others to this risk and may face long periods of unemployment/inactivity after displacement, particularly if their skills are not well-matched to emerging job opportunities. Even when they find new jobs, displaced workers tend to be paid less, have fewer benefits and are more likely to be overskilled than in the jobs they held prior to displacement. Helping displaced workers get back into good jobs quickly should be a key goal of labour market policy. To achieve this goal, Korea needs to increase resources devoted to re-employment programmes, such as job-search training and job matching, to improve their performance and better target those who need the most help. Existing training programmes need to be revised to ensure that people are obtaining skills that will help them find work. The social safety net also needs to be strengthened to lower the personal and societal costs of displacement, notably by improving the coverage of unemployment benefits.