Kilsang YOO President, Korea Employment Information Service (KEIS) Vice President, Asia and the Pacific Region, World Association of Public Employment

Kilsang YOOPresident, Korea Employment Information Service (KEIS)

Vice President, Asia and the Pacific Region, World Association of Public Employment Service (WAPES)

September 17, 2014

II Historical Development of Korean PES

IVIV Conclusion

IIII Outline of Current Korean PES

IIIIII PES Reform in Korea

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1. Colonial Period (1910-1945)

2. A Dark Period (1945-1995)

Historical Development of Korean PESII

In 1922, the first Public Employment Office was opened.

The public employment offices were in the front line of colonial exploitation by compulsory mobilization of Koreans.

The Employment Security Law was enacted in 1961

Formation of bad image on PES in Korea

Municipal PES offices (44) low quality of services⇒

Amendment of the Employment Security Law in 1967Change the jurisdiction of PES offices from municipal to central government (the Administration of Labor)

In 1972, PES offices (44) were integrated into the Local Labor Offices as an Employment Security Division. Retrocession of PES⇒In this period, Korean government was reluctant to develop PES due to the bad image on PES, formed in Japanese colonial period.

This caused the uncontrolled private employment agencies to provide low quality and unlawful services.Fixation of bad image on employment services

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3. Dawning Period of PES (1995-1997)

4. Expansion Period of PES (1998-2005)

Historical Development of Korean PES (cont.)II

Introduction of Employment Insurance (EI) in July 1995 served as a momentum of PES de-velopment for operation of EI programs.

In the process of introducing EI, the Employment Insurance Research Commission, which was in charge of designing Korean EI model, recommended a semi-autonomous public em-ployment agency for administration of EI programs and development of PES.

The Ministry of Labor decided the local labor offices (44) to implement EI programs and em-ployment service.

Korean financial crisis in late 1997 gave an opportunity to develop PES to overcome high unemployment and to change deep-rooted bad image on PES.

For payment of unemployment benefit, the Ministry of Labor established local Job Centers under the local labor offices and increased staffs of the PES.

The number of Job Centers : 99 (1998) → 122 (1999) → 168(2001) → 118 (2004)

The staffs of Job Centers were consisted with civil servants (22%) and non civil servant job counselors (78%).

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Historical Development of Korean PES (cont.)II

5. Development Period of PES (2004-present)

On April 6, 2005, President of Korea declared that development of PES shall be imple-mented as a national agenda project.

Turn the non civil vocational counselors into civil servants (in 2006)Merging Job Centers for optimal size : 118 (2004) → 82 (2008)Increased the number of staffs of Job Centers : 2,500 (2005) → 4,769 (2012)Development of employment information service system : established KEIS (2006)Introduction of in-depth counseling : target specific individualized services Introduction of competition among ministries and provincial/municipal governments

The following governments also have implemented development of PES as a national agenda project.

In 2009, Korea introduced a tailored employment support program for low-income job seek-ers, called “Employment Success Package Program”, and has expanded it year by year.

Current government has focused “Tailored Employment/Welfare” as a major national policy of PES and welfare.

“Job/Welfare Plus Center” (one-stop employment/welfare service center)

Introduction of target specific job centers for the career break women,disabled, aged, veterans, etc. (become more complex)

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1. Public Employment Service Network

Outline of Current Korean PESIIII

Municipal Job Centers(289)

Special Job Cen-ters

for the Disabled(18), Women(120), Veterans(5)

and Outplacement Ser-vice Center(25)

Regional Employment and Labor Office (6)

Job Center (83)

Job matching, Job counseling, Unemployment Benefits

Planning &Management

Division

Employment Support

Division I, II

Job SkillsDevelopment

Division

EnterpriseSupportDivision

LocalCooperation

Division

Benefit FraudInvestigation

Division

Supporting voca-tional training

Subsidies, Em-ployment Permit for migrant work-ers

Development of local partnership

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Category Organizations

Central Government Ministry of Employment and Labor (MOEL) : Job Centers (83), Job/Welfare Plus Center (5)Ministry of Patriot & Veteran : Job Centers for pa-triots and veterans (3)Ministry of Defense : Job Centers for veterans (2)

Public Institutions/NPO KEIS (MOEL)Job Centers for the disabled (18) (Employment Promotion Agency for the Disabled : MOEL)Korea Job World (1) (MOEL)Outplacement Service Center for the Mid-aged (25) (subsidized by MOEL)Women New Job Centers (120) (subsidized by Ministry of Gender Equality and Family)

Provincial/MunicipalGovernment

Provincial/Municipal Job Centers (289) (small size)

Private Employment Agency PrEAs (9,000), Temporary Work Agencies (2,000)

Outline of Current Korean PES (cont.)IIII

2. Structure of Korean Employment Services

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3. KEIS (Korea Employment Information Service)Major Functions of KEIS

Collects, analyzes and provides information on the labor market

Forecasts demand and supply of manpower

Implements panel surveys such as Youth Panel, Graduate Occupational Mobility Survey, Korea Longitudinal Survey for the Aged, Employment Path Survey for High School Graduates, Employee Mobility Survey

Develops and evaluates tailored employment support programs and career guid-ances

Assists development of public and private employment services

Monitors and evaluates major labor market programs

Develops and operates employment information networks such as Work-Net(www.work.go.kr), Human Resources Development Network(hrd.go.kr), Em-ployment Insurance Network(www.ei.go.kr), Employment Permit System(www.eps.go.kr), Ilmoa System(www.ilmoa.go.kr)

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Labor Market Analysis System

EIS

Major Employment Information Networks of KEIS

PrivateJob

PortalsContracted- out

ProvidersJob Cen-

ters of Other

Ministries

HRDKoreaQNet

MunicipalJob

Centers

National Health

InsuranceService

NationalTax

Authority

Employment sup-port

of migrantworkers

(open 2004)

Subsidized job bank

(open 2009)

Employment Support

Job bank Application for jobs and

job seekers Tailored employment

support Career guidance infor-

mation

(open 1998)

Vocational Training

VT support for job seek-ers and the employed

VT support for employ-ers

Individual Training Account

(open 2003)

Management of cov-ered employees and enterprises

Administration of EI programs

(open 1995)

Employment Insurance

Tailored employment & welfare support

(open 2012)

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1. Directions of PES Reform

Korean government has reformed PES since 2005.

Basic Directions of PES Reform

Modernization of local job centers

Individualized tailored service for vulnerable groups : customer-focused, case management approach, streamlining services through integration of programs

Establishment of one-stop service delivery system, closer linkage between employment services and welfare services

Development of local partnership in employment and welfare services

Strengthen infrastructure for better employment information services: KEIS

Activation for welfare recipients

Performance-based approach to services

PES Reform in KoreaIIIIII

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2. Cases of PES Reform

Case I : Employment Success Package ProgramCase I : Employment Success Package Program

Korea has implemented a pilot employment support package program for low-income job seekers, called “Employment Success Package Program”, since 2009 at PES and PrES.

This was the first customized case management approach in employment service in Korea (like the New Deal in the U.K.).

The project produced good results, reaching 62% in employment rate (at the end of March, 2013).

Based on the good performance, it has been expanded the annual size of service volume and target groups from low-income job seekers to the youth and the displaced middle-aged since 2012.

PES Reform in Korea (cont.)IIIIII

Type Ⅰ : for low-income job seekers Type Ⅱ : for the Youth and the displaced mid-aged job seekers

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Case I : Employment Success Package Program (cont.)Case I : Employment Success Package Program (cont.)

2. Cases of PES Reform (cont.)


Service Flow of the Employment Success Package

1st StageDiagnosis of em-ployment barriers

Enhancement of will-ingness to work

Formulation of Indi-vidual Action Plan (IAP)

<3 weeks>

2nd StageEnhancement of job competency (Free vocational training)

Enhancement of job adaptive power

Subsidized work ex-perience

<6 months>

3nd StageIntensive Job placement (3 months)

Accompanied job interview

Tailored job search skill clinic

Employment suc-cess allowance

After ServiceJob adaptive sup-port for employed participants

Further intensive job placement for un-employed partici-pants

<3 months>

Participation al-lowance

(maximum 200,000 KRW)

Participation al-lowance

(maximum 400,000 KRW per month for 6

months)

Employment suc-cess allowance (1 million KRW;

sustain employment for 1 month: 0.2M KRW,3 months: 0.3M KRW,6 months: 0.5M KRW)

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MOELPlanning,Budgeting, &Monitoring

Pro

gram

im

plem

enta

tion

Finding target people and

connecting to Job Center

Research

Training

Information Network


Program design & consultingDevelopment of service manualPerformance evaluation

Training case managersWorkshop for sharing best practices

Development & management of information network for the program

Partnership in Employment Success Package Program

MOELJob Center

Case managers

Municipal Gov't

Case managers

Contracted-out PrES/PES

Case managers

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Case II : Job/Welfare Plus CenterCase II : Job/Welfare Plus Center

Problems with segmented, provider-oriented, and very complex em-ployment and welfare delivery channels

Two many similar employment support and welfare programs

Little partnership in each level of services

Background



(Central-Central) Segmented and duplicated services from diverse ministries

(Central-Local) Services also segmented and too many similar programs

(Public-Private) Low quality services and limited public-private partnership

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Case II : Job/Welfare Plus Center (cont.)Case II : Job/Welfare Plus Center (cont.)



Integrated model of job placement, business creation, welfare ser-vices, health and medical services, and micro credit financing ser-vice with one stop visit under the one roof, same branded office

Central-local & public-private partnership model

Provide one-stop employment and welfare services

Characteristics of Job/Welfare Plus Center

The first pilot Job/Welfare Plus Center was opened on 6th January, 2014 at Namyangju City in cooperation with various employment/welfare related agencies.

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Organizations Officers Services

Job Center (MOEL) 16 Job placement, unemployment benefit, career counseling, vocational training, employer services

Municipal Job Center 9 Job placement

New Job Center for Women (YWCA) 9 Job placement, vocational training, internship,

group counseling

Local Workfare Center(YWCA)

12 Workfare works, vocational training, welfare to work program

MunicipalWelfare Service Center

4 Welfare counseling, individual case management, public assistance services

Namyangju Job/Welfare Plus Center




Participating organizations of Namyangju One-stop center

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Job Success Package Program

Initial counseling/First visit client

Micro Credit Financial Counseling

VT Counseling/Training Account

Unemployment Benefit

Women New Job Center

Welfare Service/Municipal Gov’t Job Matching Service

Overall view

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Increase in the number of visitors : 163% for New job center, 23% for Municipal Job center

Increase in the number of job placement : 123.8% (MOEL Job Center + New Job Center for Women + Municipal Job center)

Increase in customer satisfaction

Performance of the Namyangju Pilot One-stop Center

70.6% of customers were satisfied(4.0/5.0)86.0% of customers answered that they will re-visit and re-use one-stop center

Government’s Future PlanAlready opened 5 one-stop centers and 5 more in 2014, will open 20 one-stop cen-ters in each year until 2017 (Total 70 one-stop centers by 2017)


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ConclusionIVIV

1

2

Korea has experimented many diverse PES models, but Korean PES is still designing its blue print.

Korean experiences show following implications:One-stop service center with unified governance is effective in job matching and activating people.

Individualized tailored employment and welfare services are useful.

Development of employment information service and integration of on/off-line service institutions are essential.

Central-central, central-local, public-private partnership is impor-tant.

Profiling of job seekers are necessary for focusing more vulnerable groups.

Appropriate case load per case manager and number of qualified case managers are essential for tailored case management.

Documents

Kilsang YOO President, Korea Employment Information Service (KEIS) Vice President, Asia and the Pacific Region, World Association of Public Employment