Korea’s future prosperity depends on improving relevance of education and skills to labour market | WPN World People News

While Korea has seen strong economic growth and an impressive rise of skill levels over the past decades, further action is needed to improve the labour market relevance of education, remove barriers to employment and raise productivity levels in Korea, according to a new OECD report.

The OECD Skills Strategy Diagnostic Report – Korea offers a timely assessment of the country’s top skills challenges and provides a sound basis for designing an effective national skills strategy to boost the development, activation and use of skills in Korea.

“Skills have become the key driver of individual well-being and economic success in the 21st century. Without relevant skills, people languish on the margins of society, technological progress does not translate into growth, and countries are unable to compete in increasingly knowledge-based global economies – Korea is no exception”, according to Andreas Schleicher, Director of Education and Skills, OECD, launching the report in Seoul. “Korea can do more to ensure that people’s skills are more relevant for the modern workplace and that employers make better use of their employees’ skills to boost productivity and innovation. The OECD Skills Strategy framework can help Korea build effective and integrated skills policies.”

The report identifies 12 skills challenges for Korea and says the country must redouble its efforts to ensure young people have relevant skills for the needs of the labour market. Promoting work-based learning, boosting participation in vocational education and training, and fostering entrepreneurship could deliver positive labour market outcomes for more young people. Greater attention should also be given to enhance adult skills through lifelong learning and education, which is particularly critical to older workers with low skills.

The employment rate is relatively low in Korea compared to the most advanced economies. Yet, conditions are particularly tough for the large numbers of youth who are struggling to get a foothold in the labour market. The female employment rate is still one of the lowest among OECD countries, despite women’s relatively high skill and tertiary attainment levels. Improving the skills of older workers and improving their working conditions could yield double dividends by reducing old-age poverty and raising the labour force capacity. Tackling these challenges is critical to Korea’s long-term economic growth given that the working age population is projected to decline from 2017 onwards.

Employers need to make more effective use of the skills of their workers by modernising workplace practices and enhancing work-based learning. Skills mismatches could be reduced through the recognition and validation of non-formal and informal learning.

Better information about learning opportunities and labour market trends is also needed so that job-seekers, employers and prospective students can make more informed decisions.

Skills are everybody’s business. Moving from diagnosis to action will require stronger collaboration across government ministries and between national and local governments, and with stakeholders. Only by working together will Korea improve its skills outcomes and ensure a more prosperous and inclusive future for its citizens.

Source: Organization for Economic Co-operation and Development