Employment Policy Convention, 1964 (No. 122) - Republic of Korea (Ratification: 1992)

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the observations of the Korea Enterprises Federation (KEF) submitted with the Government’s 2019 and 2020 reports and the Government’s responses thereto. The Committee also notes the observations of the Korean Confederation of Trade Unions (KCTU) received on 20 September 2019. The Government is requested to provide its comments in this respect.

Articles 1 and 2 of the Convention. Overall labour market trends. The Committee notes the information provided by the Government on labour market trends, indicating that the labour participation rate for persons 15 to 64 years of age increased from 63.2 per cent in 2017 to 63.3 per cent in 2019. It adds that the overall employment rate for persons 15–64 increased year-on-year, from 66.6 per cent in 2017 to 66.8 per cent in 2019, whereas the overall unemployment rate increased slightly, from 3.7 per cent in 2017 to 3.8 per cent in 2019. The Committee notes that, according to data available to the ILO Statistics Department (ILOSTAT), as of 2021, the labour participation rate had declined only slightly from 2019 pre-pandemic levels, reaching 63.1 per cent (72.7 per cent men and 53.7 per cent women). It also notes that, while the overall unemployment rate remained relatively stable, declining to 3.6 per cent from 2019 to 2021, the unemployment rate for young persons aged 15-24 in 2021 was more than twice as high as that of the 15-64 age bracket, reaching 8.1 per cent during this period. In respect of active labour market measures, the Government refers to the adoption of the Plan to Develop Public Employment Service in June 2019. Currently, there are 989 public employment service centres operated by eight ministries and an additional 232 centres operated by local governments. In addition, a plan to achieve innovation in vocational skills development was adopted in April 2019. The annual number of trainees among jobseekers and unemployed persons participating in vocational training programmes was 280,000 in 2019, while the number of employed persons participating in such programmes was 294,000. The Government indicates that the Minister of Employment and Labour formulates a basic employment policy plan every five years in accordance with the Basic Employment Policy Act. The Committee requests the Government to continue to provide comprehensive updated information on overall labour market trends, including statistical data disaggregated by sex and age, relating to employment, unemployment and underemployment. It further requests the Government to continue to provide detailed updated information regarding the nature, scope and impact of active labour market measures implemented to promote full, productive and freely chosen employment in the Republic of Korea.

Measures addressing dualism in the labour market. The Government reports that the share of non-regular workers among wage workers increased by 3.9 per cent from 32.5 per cent in 2013 to 36.4 per cent in 2019. Among non-regular workers, the number of temporary and part-time workers increased, while the number of non-standard workers, such as dispatched and agency workers decreased. The Committee notes that the Policy Directions for Referral Workers in the Private Sector were adopted and came into force on 4 December 2019. Moreover, the Committee notes that, in the private sector, the Government provides subsidies to small and micro enterprises (SMEs) to assist them in converting non-regular workers into regular workers. The proportion of voluntary non-regular workers also increased. In this respect, the Committee notes the information provided by the Government on the measures taken to convert non-regular workers in the public sector into regular workers. As of May 2020, the converting process for 181,000 non-regular workers reached 95.4 per cent of the target number of 205,000. Moreover, in smaller organizations, 5,743 out of 6,195 non-regular workers were converted to regular status. Moreover, in the private sector, the Government provides subsidies to small and micro enterprises (SMEs) to assist them in converting non-regular workers into regular workers. However, the Committee notes that the Government does not provide information on the status of the proposed amendments to the Act on the Protection of Dispatched Workers. It notes that, according to the observations of the KCTU, a significant percentage of non-regular workers in the public sector were converted to regular status by newly established subsidiaries of public institutes, whose main function is to hire these workers to work for their parent companies. The KCTU points out that this leaves the converted workers in triangular employment relationships, in which they are classified as a category separate from that of regular workers and subject to a different system of wages. The KCTU expresses the view that the policy support provided by the Government to promote the voluntary conversion of non-regular workers in the private sector to regular workers to be limited and short-term in nature. The Committee notes that, according to the 2021 OECD Inclusive Growth Review of Korea: Creating Opportunities for All, despite the Government’s efforts, labour market dualism remains a key challenge. The report indicates that the proportion of non-regular workers remains high, with women, young persons and older workers being disproportionately employed in non-regular employment, where they earn approximately one-third less than regular workers. Only 70.8 per cent of non-regular workers are covered by unemployment insurance. Temporary workers earn less than 60 per cent of the hourly wage of a regular worker and have lower probabilities of moving into regular employment than unemployed persons. In this context, the Committee notes that the Government does not provide information on the status of the proposed amendments to the Act on the Protection of Dispatched Workers. In addition, the Committee notes the observations of the KCTU, in which it notes that the Government’s efforts to promote flexible working hours is one of the main reasons for the low-wage structure in Korea, leading to a decline in the quality of employment. It adds that, despite efforts made to reduce working hours in recent years, this has been offset by employers’ recourse to flexible hours and special exceptions which allow employers in specific industries to have workers continue to work beyond the legally permitted maximum hours and/or to change the length of their breaks. The Committee requests the Government to intensify its efforts to reduce labour market dualism in both public and private sector with a view to creating full, productive and lasting employment opportunities for both regular and non-regular workers. It also requests the Government to continue to provide detailed updated information on progress made or results achieved in this regard, including information on the status of the amendments to the Act on the Protection of Dispatched Workers. In addition, the Committee requests the Government to indicate the measures taken to address the concerns raised by the Korean Confederation of Trade Unions (KCTU) with respect to the wage structure, working hours and quality of jobs in the industries eligible for special exceptions.

Job creation policy and the COVID-19 pandemic. The Committee notes the Government’s indication that the “Five-year Job Policy Roadmap” was adopted in October 2017, establishing job creation as a national priority. As implementing measures taken under the Roadmap, the employment rate and the number of the employed for the overall population increased. The Government nevertheless indicates that the country is facing economic recession and employment shock due to the COVID-19 pandemic. In response to the difficulties in the labour market, the Government invested approximately 12 trillion won to develop and actively carry out additional measures to stabilize employment and create jobs, by expanding employee retention subsidy, designating sectors to receive special employment support, deferring the deadline for social insurance contributions, introducing emergency employment stability subsidies, a loan for the employment retention fund and providing subsidies under labour-management agreements to maintain employment. In addition, the Government established and implemented the “Korea New Deal Initiative” in July 2020 to protect jobs and to support domestic demand. In particular, the Initiative aims to expand the employment and social safety net to better protect those who are particularly vulnerable in time of crisis. The KEF indicates in its observations that, although the government estimates that employment indicators such as the employment-to-population ratio continue to improve since various measures to support employment have been implemented, the number of employed persons has been decreasing since the pandemic began. Noting the difficulties in labour market due to the COVID-19 pandemic, the Committee requests the Government to continue its efforts to create full, productive and sustainable employment opportunities for all, particularly the most vulnerable during the crisis. It also requests the Government to continue to provide information on the nature of the measures taken and results achieved in this regard. The Committee also requests the Government to provide information on the role of the social partners during the development and implementation of these measures.

Youth employment. The Committee notes that, according to the observations of the KEF, it is necessary to improve the assessment of the employment impact of the measures taken in respect of youth employment, and to better manage and monitor the existing subsidies, such as allowances for young job seekers, so that they are used for their purpose. The Committee notes the Government’s response to the KEF’s observations, indicating that it recognizes the recent rise in the extended unemployment rate of young persons, from 21.7 per cent in 2016 to 23.8 per cent in 2019, and that market response to measures taken is lagging behind actual progress. The Government indicates that there has nevertheless been continuous improvement of the youth employment indicators year on year. It adds that the youth unemployment rate also shows an overall decreasing trend despite some fluctuations. The Government further states that it is facing the biggest challenge to youth employment over the next three to four years due to demographic changes, with a large number of young persons entering labour market. To address this challenge, a youth employment strategy was developed in March 2018, focusing on providing strong incentives for companies to hire young persons and addressing problems in the job-seeking process. The Government also refers to the implementation of various initiatives, including the K-Digital Training Programme, to provide training through business, universities and institutions equipped with innovative technologies and training capacity, with the aim of fostering 180,000 young persons in high-tech industries. In particular, tailored vocational training and employment support are provided to youth not in employment, education or training through the Naeil Irum (achieve tomorrow) School Programme. The Committee notes that, on 27 August 2021, the Government introduced amendments to the Special Act on the Protection of Youth Employment, which extended the regulations on the employment of unemployed youth in public institutions for a two-year period. Pursuant to section 5 of the Special Act, public institutions are required to employ unemployed young persons (15-34), who must constitute 3 per cent of their total workforce. The Committee also notes steps taken by the Government to diversify the programmes offered by the Youth Advancement Support Project, which supports young persons who have given up on finding a job or are experiencing job anxiety and depression, as well as the Youth Job Leap Incentive, which provides support to SMEs to encourage them to employ young people facing difficulties in entering the labour market. In the context of the COVID-19 crisis, the Government increased the number of recipients of the youth job search allowance from 50,000 to 100,000 persons and the employment success package program from 50,000 to 130,000 persons. Additional budgets have also been allocated through the additional youth employment subsidy program, providing support to 90,000 persons. Noting the increasing number of young persons seeking to enter the labour market, the Committee requests the Government to strengthen its efforts to promote the long-term integration of young persons in the labour market, including educated young persons and other categories of young people who encounter difficulties in finding employment. It also requests the Government to continue to provide information on the measures taken or envisaged in this regard, as well as any progress made or results achieved.

Employment of women. The Committee notes the information provided by the Government on the adoption of the 6th Basic Plan for Equal Employment to improve the quantity and quality of employment of women in December 2017 and its implementation, by providing systematic support for maternity protection, promoting a discrimination-free working environment and supporting work-life balance. Various measures are being taken under the 6th Basic Plan, such as extending the scope of application of the Equal Employment Opportunity Act to all workplaces, strengthening protection and monitoring of sexual harassment at work, imposing obligations on employers to address the gender wage gap, promoting education that is free of gender stereotypes, providing re-employment support for women whose careers have been interrupted, as well as increasing parental leave benefits and extending the paid paternity leave from 3 days to 10 days. The Committee also notes the Government’s indication that the employment rate of women is continuously increasing, notably among women in their 30s, from 55.5 per cent in 2013 to 60.7 per cent in 2019. However, the Committee notes that, despite the reduced gap, the overall employment rate of women 15 to 64 is still significantly lower than that of their male counterparts, increasing from 70.7 per cent in 2019 to 72.7 per cent in 2021 for men and from 51.6 per cent in 2019 to 53.7 per cent in 2021 for women. The Committee further notes that, according to the observations of the KCTU, women account for 55.6 per cent of all non-regular workers and this proportion has been steadily increasing since 2003. The KCTU indicates that, after their job breaks due to marriage and pregnancy, women re-enter the labor market through precarious and irregular jobs, working for limited terms or in part time in cleaning, domestic work and service jobs. The Committee notes that, according to the 2021 OECD report, while the gender wage gap has declined significantly since 1992, from 47 per cent in 1992 to 32 per cent in 2019, at 32 per cent it is still the highest among the OECD countries. Against this backdrop, the Committee notes that, pursuant to the revision of the Gender Equality Act and the Labour Relations Commission Act adopted on 21 May 2021, the Labour Relations Commission Correction system to Address Gender Discrimination in Employment came into effect on 19 May 2022. In addition to imposing penalties on employers for gender discrimination in employment, the correction system allows workers who have been subjected to discrimination to apply for and receive redress, including improvement of working conditions and appropriate compensation. The Committee requests the Government to strengthen its efforts to increase women’s participation in the labour market, particularly in full, productive and sustainable employment, and to provide updated comprehensive information on the nature and impact of measures taken. Recalling its previous comments regarding the Workers with Family Responsibilities Convention, 1981 (No. 156), the Committee also requests the Government to continue to provide information on measures taken or envisaged to assist both female and male workers to reconcile their work and family responsibilities.

Employment of older workers. The Committee previously noted that retired employees continue to work in non-regular and part-time positions until their late sixties due to an inadequate social safety net, and that measures were taken to strengthen the outplacement and re-employment services to older workers with lifetime planning and vocational skills, including through the wage peak system. The Committee notes the Government’s indication that an analysis of the employment effect of the subsidy for employing older workers and the mid-long term policy direction for employment stability of older workers, carried out by the Korea Labour Institute in 2017, shows that the wage peak system has an overall positive impact on employment of older workers. The Government also indicates that tailored training programmes are provided to older workers, however, it is hard to measure the number of persons placed in employment as a result of the customized training, due to the lack of accumulated data samples of trainees. The Committee also notes that the statistic information provided by the Government shows an overall increase from 2013 to 2018 in the employment rate of older workers, from 73.2 per cent to 75.2 per cent among those aged 50-59 and from 38.4 per cent to 40.1 per cent among those aged 60 and over. The Committee notes that, according to the 2021 OECD report, at 34 per cent, the employment rate of workers over 65 in Korea is twice the OECD average. The report also notes, however, that low job quality for older Koreans remains a significant challenge, with many retired workers finding new employment in precarious and low-paid jobs, or in self-employment. The 2021 OECD report notes that Korea is well above the OECD average, reaching 45.7 per cent of those over 65 years of age. The Committee requests the Government to continue to provide detailed information on the measures taken to promote productive employment opportunities for older workers and their outcomes. It also requests the Government to continue to provide statistical information on employment creation, job placement results and income levels of older workers.

Migrant workers. The Committee notes the absence of information in this regard. Recalling its previous comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee once again requests the Government to provide information on the situation of migrant workers in the labour market.

Article 3. Participation of the social partners. Following its previous comments, the Committee notes the Government’s indication that social partners participate in the formulation and implementation of employment policies through meetings held within various tripartite structures. In particular, the ESLC was established in November 2018. A tripartite joint implementation monitoring group was formed at the ESLC to monitor the implementation of the Tripartite Jobs Pact. In July 2020, a tripartite agreement was concluded to overcome the COVID-19 crisis through the ESLC aiming to maintain jobs. The implementation of this agreement is monitored by a special committee established in August 2020. The Committee requests the Government to continue to provide information on consultations held with the social partners on the matters covered by the Convention. It also requests the Government to provide detailed information on consultations held with representatives of the persons affected by employment policy measures, and representatives of workers in non-standard forms of employment.

Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

The Committee notes the observations of the Korea Employers’ Federation (KEF) and the Federation of Korean Trade Unions (FKTU) communicated with the Government’s report, as well as the Government’s response thereto.

Articles 1 and 2 of the Convention. Overall labour market trends. In its previous comments, the Committee requested the Government to provide an analysis of labour market trends, taking into account the concerns expressed by the social partners regarding the employment policy measures implemented. The Committee notes the information provided by the Government indicating that the overall employment rate increased from 64.2 to 65.7 per cent between 2012 and 2015, while the unemployment rate increased from 3.3 to 3.7 per cent during the same period. In its observations, the FKTU maintains that the number of quality jobs is decreasing, referring to the results of the 2015 Employment Type Disclosure System (ETDS), which shows that larger enterprises are hiring more non-regular workers, while conglomerates (chaebol) are hiring more indirect (dispatched) workers. The FKTU also refers to the short (5.6 years) average period of service of Korean workers in 2015, compared to an average 9.5 years of service in the Organisation for Economic Co-operation (OECD) member countries. It observes that 19 per cent of workers work in excess of the statutory working hours and permissible overtime, and annual working hours have increased to 2,285 hours per year in 2015. The FKTU also expresses concern that the Government has taken measures that make it easier to dismiss workers, indicating that the Government is creating non-regular jobs by splitting quality jobs into low-paid part-time jobs to achieve its goal of attaining a 70 per cent overall employment rate by 2017. The FKTU adds that there is a lack of training opportunities for persons belonging to disadvantaged social groups, such as workers in small and micro-sized enterprises (SMEs) and those in non-regular employment. In its reply to the FKTU’s observations, the Government indicates that the number of decent jobs is not decreasing, referring to an increase in the proportion of regular workers among wage workers from 2012 to 2015 and a decrease in the proportion of non-wage workers (self employed and unpaid family workers) (from 28.2 per cent in 2012 to 25.9 per cent in 2015). The Committee requests the Government to provide comprehensive updated information on the overall labour market trends, including statistical data disaggregated by sex and age, indicating the situation, level and trends of employment, unemployment and underemployment. It also invites the Government to continue to provide detailed updated information regarding the impact of active labour market measures implemented. The Committee further requests the Government to provide information on the manner in which the principal employment policy measures are decided upon and kept under periodical review within the framework of a coordinated economic and social policy, as required under Article 2 of the Convention.

Job creation measures. The Government reports that it is actively promoting policies designed to safeguard working conditions for disadvantaged workers, referring to the Roadmap to a 70 per cent Employment Rate, launched in June 2013. The Roadmap is a national strategy that establishes policies for job creation aimed at addressing dualism in the labour market and strengthening social responsibility. The Government adds that its policies have resulted in an increase of regular workers (from 43.9 per cent to 48.5 per cent), while non regular workers (34.2 per cent to 32.5 per cent) and low-wage workers (23.8 per cent to 23.5 per cent) have decreased over the past five years, demonstrating that the policies have been effective in at least partly addressing labour market dualism. The FKTU observes that, notwithstanding these measures, as of 2015, the number of non-regular workers had reached a high of 8.68 million, with 96.5 per cent of these workers wholly or partly in temporary employment, and there was an increase in indirect employment in large enterprises and the public sector. In addition, the proportion of part-time jobs had increased to 11.6 per cent. The FKTU adds that indirect employment has increased both in large enterprises and in the public sector. In this context, the FKTU recommends corrective measures including: converting non-regular positions to permanent positions, eliminating illegal in-house subcontracting and intensifying the inspection and monitoring of employers. In its response, the Government maintains that, according to the method of calculation agreed upon by the tripartite partners, there were 6.27 million non-regular workers in 2015, showing that the proportion of non-regular workers in the country has decreased. It indicates further that the proportion of temporary workers among non-regular workers decreased from 65.7 per cent in 2011 to 65.2 per cent in 2015, while the proportion of external workers classified as indirectly employed workers has also decreased, from 20.1 per cent in 2014 to 19.7 per cent in 2016. In its observations, the KEF expresses the view that the EDTS system has not been effective in increasing regular employment, noting that regular workers in subcontracting enterprises are erroneously identified as non-regular workers. The KEF observes that recently, the proportion of non-regular workers is decreasing. In its reply to the observations of the social partners, the Government indicates that the EDTS should be maintained to improve the employment situation of workers, noting that it has implemented “employment improvement measures for public-sector non-regular workers” and converted non-regular workers engaged in permanent and continuous work in the public sector to regular status. The Government also seeks to amend the Act on the Protection of Dispatched Workers. In addition, the Government is continuing its efforts to address discrimination against non-regular workers and to strengthen labour inspection against deceptive or illegal worker dispatching and subcontracting. Concerning trade unions’ right to request relief on behalf of its members for discrimination, the Government indicates that this is an individual right which belongs only to the party whose rights were infringed. It is taking measures to promote employment of regular workers through the revision of guidelines on fixed-term and in-house subcontracted workers to, inter alia, prohibit the signing of repeated short-term contracts and provide opportunities for skills development for the former, and guarantee reasonable wages and access to welfare facilities for the latter. The Committee requests the Government to communicate updated detailed information, including statistics disaggregated by sex and employment type, on the impact of the measures taken under the 2013 National Employment Strategy. It also requests the Government to provide information on the role of the social partners during the development and implementation of these measures. In addition, the Committee requests the Government to provide detailed information on the nature and extent of the planned amendments to the Act on the Protection of Dispatched Workers.

Employment generation and deregulation. The Government indicates that a tripartite agreement was reached on 15 September 2015 to address dualism in the labour market. In this context, it encourages enterprises to allocate additional funds to improve the working conditions of non-regular workers and subcontracted workers. The Government indicates that an increasing number of non-regular workers engaged in permanent and continuous work are being converted to regular status, with 74,000 non-regular workers converted to regular status from 2013 to 2015 and 15,000 more to be converted to regular status from 2016 to 2017. The Government also indicates that the wage gap (65.5 per cent in 2015) between regular and non-regular workers has declined 3 percentage points from 2014. The Government is also improving legislation and systems, providing financial and consulting support and reinforcing labour inspection. It has strengthened sanctions against discrimination on grounds of employment type through revising the non-regular worker law and providing subsidies to convert non-regular workers into regular workers. The FKTU indicates that, despite the tripartite agreement reached on 15 September 2015, the Government submitted five bills without the approval of the social partners. It adds that the guidelines promoted by the Government make it easier to lay off workers and constitute an unfavourable change in the employment rules. The FKTU therefore asked the Government to respect the agreement and repeal the bills. Following its refusal, the workers’ representatives withdrew from the agreement and announced a protest on 19 January 2016. In its reply, the Government indicates that it proposed the bills with the ruling party on 16 September 2015, taking into account the results of the discussions held at that point. On 17 November 2015, it submitted a report including the opinions of the tripartite partners and public interest members to the National Assembly. It adds that the maximum contract period for fixed-term workers may be extended by two years at the request of the workers. It adds that the maximum number of overtime hours will be reduced from 28 hours to 12 hours, as provided for in the tripartite agreement. It also indicates that the public sector has adopted a wage peak system which has enabled the hiring of 8,000 new employees over the next two years. The Committee requests the Government to provide information on the measures taken to reduce labour market dualism and to re-initiate consultations with the social partners in this process. It also requests the Government to continue to transmit detailed updated information on the outcome of these measures, particularly on the extent to which they have led to the creation of full, productive and lasting employment opportunities for regular and non-regular workers.

Youth employment. The FKTU indicates that 1.11 million young people are unemployed and that the rate of non-regular workers among newly employed young workers stood at 64 per cent as of August 2015. It adds that there is strong pressure on young people to take low quality jobs, increasing the rate of poor working youth from 44.3 per cent to 47.4 per cent. The FKTU indicates that, despite this fact, the Government and large companies have not taken effective measures to promote youth employment. In this context, 25.6 per cent of public institutions violate the mandatory employment quota of young people; large companies prefer non-regular workers and persuade young people to take unstable and low wage part-time jobs. In its reply, the Government indicates that the FKTU did not use the official statistics published by Statistics Korea. It adds that the youth employment rate increased from 39.7 per cent in 2013 to 43.1 per cent in June 2016 and the youth labour force participation increased from 43.2 per cent in 2013 to 48 per cent in June 2016. The Government indicates that the high tertiary education enrolment rate (70.9 per cent in 2014) has led to a high unemployment rate for highly educated youth. To create more decent jobs that these young persons want, the Government has been working to narrow gaps between workers in large companies and SMEs, and between regular and non-regular workers. The Government indicates that it offers customized training and employment support for young people having difficulty finding work, through the Employment Success Package, Employment Academy, and other programmes. Although the Government recognizes that some public institutions do not comply with their obligation to hire young people, it indicates that the youth employment rate in public institutions and local public enterprises was 4.8 per cent in 2015, above the mandatory youth employment quota of 3 per cent. The number of newly hired young employees in public institutions and local public enterprises rose from 3.5 per cent in 2013 to 4.8 per cent in 2015. The Committee requests the Government to continue to provide information on the various measures implemented to promote the long-term integration of young persons in the labour market, particularly with regard to educated young persons, as well as other categories of young people who encounter difficulties in finding employment. The Committee also reiterates its request to the Government to provide information on the measures taken or envisaged to promote the inclusion of young persons who are not in employment, education or training.

Employment of women. The Government indicates that it took measures in 2014 and 2016, focusing on “work–family balance” in order to promote female employment. Measures have focused on activating the maternity protection system, expanding the use of flexible work arrangements, including quality part time work and the reinforcement of the childcare system, and re-employment support for women whose careers have been interrupted. The Government considers that, as a result of these measures, women’s economic activity rate went from 49.9 per cent in 2012 to 52.9 per cent in June 2016 and the female employment rate rose from 53.5 per cent in 2012 to 56.6 per cent in 2016. Recalling its previous comments regarding the Workers with Family Responsibilities Convention, 1981 (No. 156), the Committee requests the Government to provide information on measures taken or envisaged to assist both female and male workers to reconcile their work and family responsibilities. The Committee requests the Government to provide updated comprehensive information on the nature and impact of measures taken to increase women’s participation in the labour market, particularly in full, productive and sustainable employment.

Employment of older workers. The Government indicates that it encourages the employment of older workers by promoting the adoption of the wage peak system, expanding subsidies to institutions which support it, as well as the re employment of older workers through customized training. The FKTU indicates that, despite the retirement age of 53 in Korea, retired employees continue to work in non-regular and part-time positions until their late sixties due to an inadequate social safety net. In its reply, the Government indicates that the retirement age stipulated by law is 60. It notes that after retiring, older workers are being re-employed in low quality jobs, and it is therefore strengthening its outplacement and re-employment services to help older workers with lifetime planning and vocational skills. The Committee reiterates its request to the Government to communicate detailed information, including statistical data allowing it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for older workers. It also requests the Government to indicate the impact of the wage peak system on older workers’ employment as well as the number of persons placed in employment as a result of the customized training.

Migrant workers. Recalling its previous comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee requests the Government to provide information on the situation of migrant workers in the labour market.

Article 3. Participation of the social partners. The Government indicates that, in August 2013, a “tripartite joint implementation monitoring group” was formed at the Economic and Social Development Commission to monitor the implementation of the Tripartite Jobs Pact for a year. It adds that, in October 2013, it designated 14 regional human resources development councils (HRD councils) in major cities and provinces. In addition, it selected 29 joint (professional) education and training institutions providing education and training to generate human resources tailored to regional needs, starting in March 2014. The training was provided to 54,000 people in 2015 and was expected to reach 55,000 people in 2016. The FKTU indicates that only representatives from local governments or large businesses are entitled to chair these committees. It adds that a majority of committee members are employers’ representatives, whereas only a few are drawn from labour. In its reply, the Government indicates that people from labour circles can also represent regional HRD councils. It adds that, the Gyeonggi Regional HRD Council is currently being co-chaired by a person drawn from labour, and that every regional HRD council has at least one member from labour. The Committee requests the Government to continue to provide information on the implementation of the Tripartite Jobs Pact. It also requests the Government to communicate information regarding consultations with the social partners on the matters covered by the Convention, as well as on consultations with representatives of the persons affected by employment policy measures, and representatives of workers in non-standard forms of employment.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Articles 1 and 2 of the Convention. Overall labour market trends. The Committee takes note of the Government’s report received in September 2013 which includes detailed information in reply to the 2011 observation. The Committee notes that the unemployment rate experienced a slight decrease of 0.5 percentage points, between 2009 and 2012, from 3.7 to 3.2 per cent. The data provided also reflects a decrease in the unemployment rates for youth and women during that same period, respectively of 0.5 and 0.3 percentage points (from 8 to 7.5 per cent and from 3.3 to 3 per cent). The Government indicates that, the number of newly employed people is continuously increasing, despite the economic slowdown. The Committee notes the observations made by the Federation of Korean Trade Unions (FKTU) submitted with the Government’s report, as well as the observations made by the Korean Confederation of Trade Unions (KCTU). The FKTU indicates that the employment rate has been improving but is still below the OECD average and that the gap stands out in the employment of women, youth, and the elderly. Both workers’ organizations indicate that, despite the increase in the employment rate, the quality of employment is not improving. The FKTU believes that the Government, when implementing measures for job creation, should focus on increasing not only the employment rate but also the number of quality jobs. The KCTU indicates that the aforementioned increase results from the expansion of industries with higher levels of precarious employment and from the growth of non-waged workers (for example, self-employed persons). The Government recognizes that efforts should be made not only to achieve the set goal of 70 per cent employment rate by 2017, but also to enhance the quality of employment. It adds that the steady increase in the total number of employed people is a result of that of waged workers; rather, the share of non-waged workers has been declining. The Committee invites the Government to continue to provide an analysis of the labour market trends, taking into account the concerns of the social partners regarding the effectiveness of the employment policy measures implemented.

Job creation measures. In August 2011, the Government set up a National Employment Strategy aimed at achieving an employment rate of 70 per cent by 2017. The Government also announced four grand national employment strategies, namely, pursuing employment-friendly economic and industrial policies; fostering of dynamic and fair work environment; utilizing marginalized work force and strengthening their vocational skills; and, reorganizing the social safety net to encourage work ethic. The KCTU indicates that, far from alleviating the dual structure of the labour market, the National Employment Strategy has contributed to its deterioration. The Committee invites the Government to continue to supply information on the impact of the measures taken under the National Employment Strategy.

Employment generation and deregulation. The Committee notes that, while policies to improve labour market regulations were implemented as a part of the 2011 National Employment Strategy, the Government deems it premature to expect their results in terms of impact on the overall job creation. According to the FKTU, the quality of employment is not improving, as the number of non-regular workers is not decreasing. The Government indicates that it is striving to entrench the practice of employing regular workers for permanent and continuous work, to improve the working conditions of non-regular workers, and to ease discrimination against them. Moreover, it reports that a Guideline for In-House Subcontracted Work was established in July 2011 in order to protect employment stability and to enhance the working conditions of in-house subcontracted workers; 295 workplaces hiring many in-house subcontracted workers were targeted for priority control. The Committee invites the Government to provide in its next report information on the measures implemented in consultation with the social partners to reduce labour market dualism. Please also include information on the results of these measures, indicating whether they have translated into productive and lasting employment opportunities for non-regular workers.

Youth employment. The Government indicates that, as a result of the measures implemented during the 2010–11 period, 73,000 decent jobs were created for young people between 2011 and 2012. The Committee notes that a special committee for the improvement of youth employment was created in cooperation with the public and private sectors. In addition, job creation and career guidance measures have been adopted, namely, the “Youth Employment Academy Business” and the “Yes Programme for Youth.” The Government also indicates that efforts are being made to find businesses for the purposes of job placement. Furthermore, job centres for the youth are being established in colleges for the purposes of job placement; 43 colleges received governmental support in 2012. The KCTU indicates that, despite the various measures adopted by the Government in order to tackle the youth employment issue, the numbers are still declining. It attributes those results to the fact that the measures are short term and performance orientated. The KCTU believes that a long-term intervention to provide decent jobs to young people and to expand companies’ labour demand is necessary, and that active labour market policies based on unemployment assistance and various measures to advance the level of training of young people and to promote their entrance to the labour market should be actively considered. In its reply, the Government indicates that youth employment issues are caused by both cyclical and structural factors in the labour market, changes in the structure of the population of young persons should also be taken into account. The Committee notes that the Government is committed to move towards policies aiming to improve the quality of jobs, to address structural problems in the labour market, and to address the mismatch between labour supply and demand. The Committee invites the Government to provide in its next report an evaluation of the various measures implemented to promote the long-term integration of young persons in the labour market, especially with regards to educated young unemployed persons, as well as other categories of young people having difficulties in finding employment. Furthermore, the Committee invites the Government to provide information on the measures taken in order to address the issue of the inclusion of youth who are not in employment, education or training.

Employment promotion for women. The Government reports that women’s participation rate has experienced a slight increase of 0.4 percentage points, between 2009 and 2012, from 49.4 to 49.9 per cent; whereas, women’s employment rate has increased by 1.2 percentage points, from 34 to 35.2 per cent, during that same period. The FKTU and the KCTU expressed that, while the number of women workers has increased, the quality of their jobs has not improved. The KCTU indicates that, in terms of demand, most of the jobs for women are limited to precarious jobs, and re-entrance in the labour market for those who have interrupted their careers is limited. The ratio of non-regular workers among women is increased, as a result of post career-break jobs; it goes from 47.3, when they are in their twenties, to 61.6 per cent, once they reach their forties. Moreover, the KCTU indicates that, while the ratio of part-timers among women increased from 12.3 to 14.4 per cent between 2006 and 2012, it only increased from 3.9 to 5 per cent among men. The KCTU considers that the most serious problem is the Government’s active promotion of part-time orientated job creation policy to increase the women’s low employment rate. The Committee encourages the Government to seek cooperation with employers’ and workers’ organizations in its efforts to increase women’s participation in the labour market and to evaluate the impact of the various measures implemented.

Employment promotion of older workers. According to the data provided in the Government’s report, the proportion of workers aged 50 and above increased from 24.79 to 34.28 per cent between 2004 and 2012. The Government is implementing measures in order to extend the employment of older workers. The Committee notes that, as a result, the employment rate of middle and old-aged workers (55–64 years of age) increased from 60.4 in 2009 to 63.1 per cent in 2013. The Committee invites the Government to continue to provide data allowing it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for older workers.

Article 3. Participation of the social partners. The Government indicates that, since 2007, the Economic and Social Development of Korea has had various successful discussions and agreements, including, among others, the employment promotion of middle and old-aged workers. In addition, the Government has been promoting a regional partnership consultative group in order to discuss issues, such as job creation and the stabilization of labour since 2008. The Government also indicates that it supports the promotion of labour management councils as a core institution for the establishment of productive partnerships. Furthermore, the Committee takes note of the information provided, in the report submitted on the application of the Human Resources Development Convention, 1975 (No. 142), with regard to the subscription of a Tripartite Jobs Pact in May 2013. The Committee invites the Government to include information, in its next report, on the implementation of the Tripartite Jobs Pact and on any other measures taken with the social partners on the matters covered by the Convention.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 2 of the Convention. Overall labour market trends. The Committee notes the Government’s report for the period ending in May 2010, which includes replies to previous comments and detailed labour market data indicating that the rate of unemployment was 3.6 per cent in 2009 (0.4 percentage point higher than in 2008), a first such increase since 2005. The Committee further notes the comments submitted by the Korean Confederation of Trade Unions (KCTU) stating that the nation’s capability to create jobs has been deteriorating as the economy followed a pattern of economic growth without employment generation. The employment rate was close to 59 per cent in 2009, and the figure has not changed much for years, posing employment issues. The unemployment rate was 4.1 per cent in March 2010, but the KCTU observes that more than 3 million workers are underemployed, including a very important number of young workers. The Federation of Korean Trade Unions (FKTU) has also observed that the Government initiatives to boost employment through growth and labour market flexibility were identified as a cause of the global economic crisis. The Committee invites the Government to include in its next report, as it did in the past, an analysis of the labour market trends taking into account the assessment made by the social partners of the effectiveness of the employment policy measures implemented.

Job creation measures. The Committee notes from the report that job creation projects directly funded by the Government created 810,000 jobs, including major public works programmes such as the Hope Work Project which employed 250,000 people from low-income families. The Government indicates that despite a growing number of jobseekers due to the economic crisis and programmes implemented to provide vocational skills development, some workplaces had trouble finding suitable workers. The Committee also notes that under the national strategy and five-year plan for green growth established in July 2009, the Government laid the foundation for the creation of decent green jobs by monitoring working conditions and improving work environments, including the introduction of new technical qualifications to meet the needs of green industries. The number of green jobs was estimated at 610,000 in 2008 and the Government expects it will rise at an annual average of 6 per cent from 2009 to 2013, reaching about 810,000 people in 2013. The FKTU indicates that 78 per cent of the projects announced are public works and construction projects, but the funds allocated for research and development for the green economy appear to be limited when taking into account the expectations. The Committee invites the Government to continue to supply information on the impact of the measures taken to promote full employment within a framework of a coordinated economic and social policy.

Employment generation and deregulation. The KCTU expresses concern to many deregulation initiatives considered as job creation measures by the Government. It claims that the Government is revising laws and labour market institutions to increase non-regular workers and dispatched workers, facilitate part-time work and expand private employment services. The Committee invites the Government to provide information on the impact and results achieved in terms of productive job creation by new labour market regulations.

Youth employment promotion. The Government indicates that 426,000 young persons were having difficulties in finding employment in May 2010, representing a youth unemployment rate of 6.4 per cent, compared to 8.1 per cent in 2009. The Government launched measures aimed to provide short-term jobs to young people and enhance their employability. The New Start Project provided young people with comprehensive individually specialized employment services. The FKTU indicates that one in every four young persons is in fact out of work and claims that the youth employment measures implemented by the Government produced poor results when looking at the total amount of funds invested. It further indicates that public institutions and local public enterprises do not comply with their obligation under the Special Act on the Promotion of Youth Employment, as amended in June 2010, to hire at least three unemployed young people per year for every 100 workers employed. The KCTU denounces the significant reduction of decent jobs for young people, as jobs created by the Government for the youth have been low-wage or temporary jobs on a less than one-year contract. The Committee asks the Government to provide in its next report data which will allow assessing the effectiveness of the various measures implemented to promote the long-term integration of young persons in the labour market. The Government might also wish to hold appropriate consultations with the social partners and representatives of the stakeholders concerned in overcoming the difficulties encountered to obtain lasting employment for young people. In this regard, the Committee recalls its concluding remarks in the 2010 General Survey concerning employment instruments, where it was noted that there is a growing problem of unemployment among educated workers, particularly young university graduates, who are unable to find secure employment commensurate with their skill level. Not only are their skills underutilized, but this pattern of casual jobs can prove detrimental to their lifetime career progression. The Committee encourages the Government to develop job creation and career guidance policies targeted at educated young unemployed persons, as well as other categories of young people having difficulties in finding employment.

Employment promotion for women. The Committee notes that the female participation rate increased to 50.5 per cent in May 2010 (6 percentage points higher than in 2009). The Government also reports on various measures to ease childcare burden on working women and to support reconciliation between work and family life. It also mentions a draft of a five-year plan to prepare for a low fertility and aging society, to be adopted after consultations and a public hearing. The FKTU indicates that, in its effort to promote decentralization, the Government is delegating its responsibilities relating to equal employment to local governments. The KCTU claims that regular female employment continues to fall. The Committee asks the Government to provide in its next report data which will allow it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for women.

Employment promotion of older workers. The Government indicates that it supported 274,849 people by providing subsidies for employment promotion for older workers and 1,497 people in 224 workplaces by paying allowances to compensate for wage cuts under the wage peak system. The Committee notes that a total of 3,031 people were employed after completing short-term adaptation for middle and old-aged people and that the employment rate for people aged 55–63 increased from 57.8 per cent in 2003 to 60.4 in 2009. The FKTU indicates that in 2003, people retired from their major career at 54 and then spend some 13–14 years in their second career with poor working conditions before complete retirement. The focus of the measures targeting those aged 55 or above is placed on implementing job retention and there are few job creation policies for older workers. The FKTU further notes that the recommendations included in the Act on Prohibition of Age Discrimination in Employment and Aged Employment Promotion were not accompanied by penal provisions and do not work effectively as measures for older workers. The Committee asks the Government to include data which will allow it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for older workers.

Article 3. Participation of the social partners. In reply to previous comments, the Government summarized in its report the agenda of the meetings held by the Regional Tripartite Consultative Body. The FKTU indicates that only government agencies participated in the process of setting up a national employment strategy without involving the representatives of the workers’ organizations or the tripartite Economic and Social Development Commission. The KCTU asks for further measures to improve the quality of employment, creation of decent jobs in the public and social service sectors, building employment protection and new infrastructure for the public employment services. The Committee invites the Government to provide information in its next report on how consultations with the social partners have been used in the formulation and implementation of the employment policy. In this regard, the Committee asks the Government to focus on the points raised in this observation and the procedures which enable it to take fully into account the views and experiences of persons affected by employment policy measures.

Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

The Committee notes the information provided by the Government in its report received in September 2008, including the replies to the Committee’s previous direct request. The Committee asks the Government to supply additional information on the practical application of the Convention, in respect of the following matters.

1. Article 1 of the Convention. Overall labour market trends. The Committee notes that the rate of unemployment in 2007 was 3.2 per cent, which was 0.3 percentage points lower than the previous year. The annual increase of the employment rate was 2.6 percentage points in the 1990s, prior to the financial crisis; however, in the post-crisis period, the annual rate of employment decreased 1.9 percentage points. The Government indicated that the growth rate of the Korean economy decreased from 8.7 per cent in the 1980s, and 6.2 per cent in the 1990s, to 4.6 per cent in 2000s. The Government also indicates that such statistics serve to confirm the connection between economic growth and employment creation. Since the 1990s, employment in the manufacturing sector has decreased, and employment in the service sector has increased. The Government states that, despite the fact that the 1990s financial crisis made labour market conditions turn for the worse, the average annual growth rate of the service sector was 4.4 per cent. The Committee asks the Government to continue to supply related statistics on labour market trends and requests further information on the measures taken to promote full employment within a framework of coordinated economic and social policy.

2. Youth employment promotion. According to the Ministry of Labour, the youth employment rate has fallen from 45.1 per cent in 2004 to 42.6 per cent in 2007. The Committee notes that, in 2007, the youth unemployment rate remained more than twice that of the unemployment rate for the entire active population, and the number of young persons having difficulties in finding an employment amounted to 1 million. The Committee also notes that Government support to programmes aimed at improving access to youth employment increased from 2,968 billion won, providing assistance to 164,000 young persons in 2003, to 8,925 billion won, providing access to 218,000 young persons in 2007. The Government also indicates that it provides youth employment promotion subsidies for SMEs, offers vocational career guidance and runs the Youth Employment Service Programme for young persons from disadvantaged groups. The Government intends to implement the 2009 major workplan for the Ministry of Labour, which makes provision for investment in programmes to promote youth employment and to resolve labour shortages in SMEs. Other measures include a youth scholarship system and the “New Start Project” for 10,000 disadvantaged youths. Such measures are aimed at assisting young persons who face difficulties in finding a first job and the long-term unemployed. The Committee invites the Government to provide information on the impact such measures have had on the participation of young persons in the labour market, and their ability to find lasting and productive employment.

3. Employment promotion of women. The Committee notes that the participation rate of women was 54.8 per cent in 2007. The Government indicates that support programmes were put in place to promote female employment, including through the provision of subsidies to employers to cover childcare leave benefits (500,000 won per month in 2007); the provision of assistance for the recruitment of a replacement worker in the event that female workers take childcare leave; the provision of loans (up to 500 million won) or free support for the establishment of childcare facilities at the workplace; and the provision of vocational training and assistance for unemployed women, who are heads of household to start up businesses. Furthermore, the Committee notes the programmes, including affirmative action measures, to expand female employment in government-funded institutions as well as government-affiliated organizations, and in companies with 1,000 or more employees. As at 2008, such measures also extend to workplaces with 500 or more employees. The Committee asks the Government to continue to supply information regarding the results of the programmes and measures implemented to increasing the participation of women in the labour market.

4. Employment promotion of older workers. The Committee notes the rate of employment of older workers (aged 55–64) was 60.6 per cent in 2007 representing an increase of 3.2 percentage points over the previous four years. The Government has been providing subsidies to employers who employ a large number of older workers or who re-employ retired persons and extend the retirement age. The Government implemented an older worker-friendly wage system through the “Compensation Allowance for Wage Peak System”. In addition, the Ministry of Labour has designated, and operates, 126 organizations as training institutions for short-term adjustment which provide skills development support for older workers. The Committee invites the Government to continue to provide more information in its next report on the effectiveness of the programmes implemented to assist older workers.

5. Migrant workers. The Committee notes the action taken by the Government to prevent unfair practices in recruiting foreign workers, including the introduction of procedures to prevent possible corruption by prescribing that private entities shall not intervene in placement of foreign workers. The Committee asks the Government to provide further information on measures in place aimed at supporting foreign workers and the protection of their rights. In this connection, the Committee draws the Government’s attention to the relevant provisions of Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169).

6. Article 3. Participation of the social partners. The Committee takes note of the Government’s plan of 2008, which was aimed at enhancing regional labour–management cooperation and expanding the participation of social partners through the reorganization of the Regional Tripartite Consultative Body into the Regional Consultative Body. The Regional Consultative Body will be composed of representatives of social partners selected at the regional level, as well as representatives of civil society, including SMEs and precarious workers. The Committee requests information on the way in which the views of the social partners are taken into account in the formulation of employment policies in the Regional Consultative Body. The Committee also invites the Government to indicate the recommendations made by the social partners, as well as the consultations with representatives of other sectors of the economically active population such as those working in the rural sector and the informal economy, in relation to the formulation and implementation of employment measures.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

1. In reply to its 2005 direct request, the Committee notes the information contained in the Government’s report received in February 2007. The ILO Subregional Office in Bangkok has also brought to the Committee’s attention additional information regarding the application of the Convention.

2. Article 1 of the Convention. Overall labour market trends. The Government indicates in its report that the number of employed people has increased steadily in spite of worsening economic conditions. The number employed was 23,164,000, up by 1.4 per cent as compared to the same period in 2005. While this figure has fallen in the agriculture, fishery and manufacturing sectors, it has risen in business and other service sectors by 4.9 per cent. Even though the average annual unemployment rate remains 3.6 per cent, the employment rate was 63.7 per cent indicating a slight increase (0.1 per cent higher) than the previous year. The Committee would appreciate receiving in the Government’s next report relevant statistics on labour market trends and further information on the extent to which economic growth is leading to employment generation specifically in sectors that have been vulnerable to worsening economic conditions.

3. Employment support programmes for vulnerable groups. The Committee notes the information provided on measures to promote the employment of women including detailed information about the number of beneficiaries and amounts spent. It further notes the comprehensive package of active employment policies for young people during their transition from school to work (career guidance, employment services, direct employment, on-the-job training and temporary subsidies). Taking into account the situation of the vulnerable groups as summarized below, the Committee asks the Government to include in its next report an evaluation of the effectiveness of the programmes implemented and their impact, in terms of employment generation, on enabling women, young workers, older workers and workers with disabilities to find lasting and productive employment.

(a)   Employment promotion of women. The Government indicates that the labour force participation rate for women has increased from 48–49 per cent in 1995, to 50 per cent in August 2006, which is still below the OECD average of 60.4 per cent in 2005. Supporting programmes in place to promote female employment include subsidies to employers to cover childcare benefits and the cost of using replacement workers during childcare leave; the provision of maternity protection and loans for establishing childcare facilities in the workplace. Other programmes include affirmative action measures to expand female employment in government-funded institutions as well as government-affiliated companies and agencies with 1,000 or more workers. Such measures will extend to workplaces with 500 or more employees, starting from 2008. Furthermore, female re-employment is promoted through subsidies to ensure the continuous employment of female workers after childbirth. Other employment promotion measures targeting unemployed female household heads include employment training and support for starting small business ventures.

(b)   Youth employment promotion. The unemployment rate for youth aged 15–29 was 7.4 per cent in August 2006. According to the Government’s report, around 200,000 young people have benefited as a result of government support for jobs and training. Such measures consist of subsidies provided so that unemployed youth can develop vocational competencies and build careers through on-the-job experience. Furthermore, employers that hire a young person who has been unemployed for more than three months are eligible for government subsidies.

(c)   Employment promotion of the elderly. The economic activity participation rate for those aged 55–64 was 60.2 per cent, which is higher than the OECD average of 54.2 per cent. Government measures to achieve this result comprise of a range of subsidies. This includes compensation for wage cuts under certain conditions, and subsidies for employers that hire the aged as well as those that retain retirees after retirement age. Additionally, companies with more than 300 workers are required to employ a certain percentage of aged workers. Furthermore, employers that set the retirement age too low are required to review such polices with a view to extending the retirement age. Lastly, private job-placement agencies have been established to assist the aged.

(d)   Workers with disabilities. Employment trends reflect a steady increase in the employment rate for persons with disabilities: 0.43 per cent in 1991 to 1.55 per cent in 2005. The number of persons with disabilities employed by the private sector as well as the public sector was 61,862 at the end of 2005. Employment promotion activities include appointing such persons to teaching positions. Additionally, support measures have been provided for students with disabilities to become public servants through career guidance and preparatory classes. To increase the employment rate of persons with disabilities in the private sector, the Government has introduced a system of incentives and corresponding sanctions when companies fail to meet standard employment rates. In this respect, the Committee refers to its 2005 direct request on the application of Convention No. 159.

4. Migrant workers. The Government reports that in 2004 it introduced an Employment Permit System for migrant workers, which is being increasingly used to issue employment permits for foreign workers. Furthermore, the Migrant Workers’ Centre, also established in 2004, offers services to assist foreign workers adapt to life in the country as well as to protect their human rights. The Committee invites the Government to report in detail on the action taken within the framework of an active employment policy to prevent unfair practices in the recruitment of labour (see Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169)). It also encourages the Government to inform both employers’ and workers’ organizations of its policies and labour standards to protect the rights of migrant workers.

5. Article 2, paragraph (a). General economic policies. In reply to the previous direct request, the Government indicates that it is encouraging the development of new technologies and programmes to support venture firms and reduce working hours as well as implementing macroeconomic policies to further job creation and that, on the whole, these measures are making an impact on the labour market. Studies that analyse the impact of such policies on employment will be undertaken starting from 2007. The Committee reiterates its interest in receiving information on the manner in which other macroeconomic policies, such as monetary and fiscal policies, operate within the “framework of a coordinated economic and social policy” in order to attain the objectives of the Convention.

6. Article 3. Participation of the social partners. The Committee notes the meetings held by the Employment Policy Council which actively works with social partners on the matters covered by the Convention. The report details the agenda and outcome of meetings held by the Employment Policy Council since 2001. The Committee invites the Government to provide further information in its next report on the recommendations made by the social partners as well as consultations with representatives of other sectors of the economically active population such as those working in the rural and informal economy in relation to the formulation and implementation of employment measures.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2005 direct request, which read as follows:

1. Labour market and training policies. The Committee notes the information contained in the Government’s report received in October 2004 for the period between May 2001 and May 2004. The Government indicates that, due to a domestic and international economic upturn, unemployment decreased slightly from 3.4 per cent in 2003 to 3.2 per cent in 2004. The Government also indicates that small and medium-sized enterprises experienced a labour shortage of 139,000 workers in 2003, and it plans to address this shortage by promoting the employment of women, youth, the elderly and people with disabilities through labour market policies. Programmes to benefit these groups include:

–      Youth employment promotion. Subsidizing companies who hire youths; organizing career fairs; and creating work experiences through vocational training, overseas training and internship programmes. From January 2004 to June 2004, 134,000 youths were provided with jobs or training opportunities. The Government aimed to benefit a total of 143,000 youths by the end of 2004.

–      Employment promotion of the elderly. Setting industry quotas on the employment of the elderly; providing mid-career training to enhance employability; and subsidizing companies for hiring elderly workers. The Government also plans to introduce other programmes to facilitate favourable employment conditions for the elderly in 2005, such as financially supporting companies that extend the retirement age.

–      Employment promotion of women. Implementing affirmative action programmes in the private and public sectors; assisting working mothers; and providing training for unemployed female household heads.

2. The Committee requests the Government to continue to provide relevant statistics on the employment of these groups, such as unemployment and labour participation rates, to assess the results achieved through these measures. In addition to promoting the employment of women, youth, the elderly and disabled, the Committee would be grateful if the Government would indicate in its next report whether programmes are in place to support the employment of other vulnerable groups, such as migrant workers. In this regard, the Committee also refers to its comments on the application of the Employment Service Convention, 1948 (No. 88), and the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159).

3. General economic policies. In addition to its labour market and training policies, the Government is pursuing other measures to create jobs, such as encouraging the development of new technologies, supporting venture firms, and reducing working hours. The Government states that these measures have only been implemented recently, so their progress is presently unknown. The Committee requests the Government to include in its next report any evaluation available on the impact of these programmes and its contribution to employment promotion. For example, reducing working hours has the potential to significantly impact the level and structure of employment. Furthermore, the Committee would appreciate information on the manner in which other macroeconomic policies, such as monetary and fiscal policies, advance the promotion of full, productive, and freely chosen employment (Articles 1 and 2 of the Convention).

4. Participation of the social partners in the formulation and application of policies. The Committee notes the information concerning the membership composition of the Employment Policy Council and special committees and the policy-making processes, agendas and results of tripartite consultation. It requests that the Government continue to provide information on the issues articulated by the social partners and the incorporation of their opinions in employment policy (Article 3).

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

1. Labour market and training policies. The Committee notes the information contained in the Government’s report received in October 2004 for the period between May 2001 and May 2004. The Government indicates that, due to a domestic and international economic upturn, unemployment decreased slightly from 3.4 per cent in 2003 to 3.2 per cent in 2004. The Government also indicates that small and medium-sized enterprises experienced a labour shortage of 139,000 workers in 2003, and it plans to address this shortage by promoting the employment of women, youth, the elderly and people with disabilities through labour market policies. Programmes to benefit these groups include:

-  Youth employment promotion. Subsidizing companies who hire youths; organizing career fairs; and creating work experiences through vocational training, overseas training and internship programmes. From January 2004 to June 2004, 134,000 youths were provided with jobs or training opportunities. The Government aimed to benefit a total of 143,000 youths by the end of 2004.

-  Employment promotion of the elderly. Setting industry quotas on the employment of the elderly; providing mid-career training to enhance employability; and subsidizing companies for hiring elderly workers. The Government also plans to introduce other programmes to facilitate favourable employment conditions for the elderly in 2005, such as financially supporting companies that extend the retirement age.

-  Employment promotion of women. Implementing affirmative action programmes in the private and public sectors; assisting working mothers; and providing training for unemployed female household heads.

2. The Committee requests the Government to continue to provide relevant statistics on the employment of these groups, such as unemployment and labour participation rates, to assess the results achieved through these measures. In addition to promoting the employment of women, youth, the elderly and disabled, the Committee would be grateful if the Government would indicate in its next report whether programmes are in place to support the employment of other vulnerable groups, such as migrant workers. In this regard, the Committee also refers to its comments on the application of the Employment Service Convention, 1948 (No. 88), and the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159).

3. General economic policies. In addition to its labour market and training policies, the Government is pursuing other measures to create jobs, such as encouraging the development of new technologies, supporting venture firms, and reducing working hours. The Government states that these measures have only been implemented recently, so their progress is presently unknown. The Committee requests the Government to include in its next report any evaluation available on the impact of these programmes and its contribution to employment promotion. For example, reducing working hours has the potential to significantly impact the level and structure of employment. Furthermore, the Committee would appreciate information on the manner in which other macroeconomic policies, such as monetary and fiscal policies, advance the promotion of full, productive, and freely chosen employment (Articles 1 and 2 of the Convention).

4. Participation of the social partners in the formulation and application of policies. The Committee notes the information concerning the membership composition of the Employment Policy Council and special committees and the policy-making processes, agendas and results of tripartite consultation. It requests that the Government continue to provide information on the issues articulated by the social partners and the incorporation of their opinions in employment policy (Article 3).

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information contained in the Government’s report for the period ending 31 May 2002, as well as the information supplied in response to its previous comments.

1. Articles 1 and 2 of the Convention. The Government reports that, as a result of efforts made to promote industrial restructuring, the economy has made progress towards the objective of full recovery. Unemployment decreased from 4.1 per cent in 2000 to 2.7 per cent in June 2002. The participation rate increased from 60.7 per cent in 2000 to 62.2 per cent in June 2002. Female employment has also increased, going from 41.1 per cent in 1985 to 48.8 per cent in 2001. The Government states that its commitment to employment promotion is manifested by the implementation of a range of programmes and measures which include, inter alia, vocational training and apprenticeships for youth, employment support for the disabled, employment support for older workers and measures promoting women’s employment. The Committee would appreciate being kept informed of the success of these policies and programmes in fulfilling the objectives of the Convention of full, productive and freely chosen employment.

2. The Committee notes the information provided on measures for promoting employment among particular groups of jobseekers, including the following:

-  increasing opportunities for women through development and improvement of vocational ability and reinforcement of welfare provisions with a view to securing equal opportunity and treatment for men and women and facilitating easier adjustment to the occupation in the employment;

-  providing employment information and vocational guidance services for youth, such as job counselling, and opportunities of vocational training to enable them to choose jobs suitable to their aptitude. The youth work experience programme was introduced in 2002 and has since been implemented to provide support for youth career building and ability development in response to a new employment pattern in which employers prefer to hire experienced workers. Around 40,000 young people participated in the 2002 work experience programme;

-  finding jobs suitable for older workers, expanding opportunities for their vocational ability development, providing relevant employment information and taking other necessary measures. Currently there are 168 employment security centres, 36 manpower banks for older workers and one manpower information centre for the highly skilled that provide job placement services for older workers. The Government also offers employers subsidies if at least 6 per cent of their monthly average workforce is composed of workers aged 55 or older. Older workers represent up to 15 per cent of the workforce for SMEs and 10 per cent for conglomerates.

The Government also states that it will seek to offer support for the purpose of stabilizing the livelihood of the unemployed, and to prevent general unemployment through the promotion of sound corporate management. Please continue to supply information on the impact of these and other measures set out in the Basic Employment Policy Act on employment promotion. Please also continue to provide information on trends in the quality of employment.

3. The Committee notes that, in accordance with the Government’s recent working hours reform, a number of occupations are to move towards a shorter workweek including the adoption of a two-day weekend and a nationwide reduction in working hours. Cognizant that these policy measures have the potential to significantly impact the level and structure of employment, the Committee would appreciate receiving further information on the implementation of these policy measures, including any evaluation of their effectiveness in carrying out the objectives stated in the Government’s employment policy.

4. Article 3. The Committee notes the information concerning the Employment Policy Council and its affiliated organizations, such as the Special Committee on Employment Policy, the Special Committee on Employment Insurance and the Special Committee on Ability Development. The Committee requests that the Government continue to provide detailed information on the effect given to this important provision of the Convention, by specifying how often the Council and its organizations hold meetings, the issues included in their agendas, the opinions put forward and the way in which these opinions are taken into account.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2001 direct request which read as follows:

The Committee notes the information contained in the Government’s report for 1 June 1998 to 31 May 2000, as well as information supplied in response to previous comments.

1. Articles 1 and 2 of the Convention. The Government states that the economy has steadily recovered since the financial crisis, and conglomerates are undergoing restructuring. The participation rate increased from 60.7 per cent in 1998 to 61.7 per cent in July 2000. Unemployment decreased from 6.8 per cent in 1998 to 3.6 per cent in July 2000. In reply to previous comments, the Government states that fiscal, monetary and trade policies are all aimed at promoting the general health of the economy and attracting investment, which lead to employment promotion. The Government has instituted a range of programmes to promote employment, including facilitating job mobility, encouraging employment of workers with disabilities, creating public-sector jobs for the long-term unemployed, and vocational guidance and apprenticeships for youth. Please continue to provide information on the outcome of employment promotion measures.

2. The Committee also notes the progress made in increasing the participation rate of women, from 41.9 per cent in 1985 to 47.4 per cent in 1999. The Government has established a childcare leave subsidy and day care centres, and provides grants and wage subsidies. The Committee would appreciate further information on means other than wage subsidies to encourage employers to hire more women workers, such as focused training to ensure that their skills are in demand.

3. The Committee notes that the Government is encouraging development of private placement agencies, and that 77 per cent of placement agencies are now fee-charging. In light of the critical role of placement services in promoting employment and concern for equality of access to employment, the Committee requests further information on measures taken to ensure that effective placement services are available to all, regardless of ability to pay.

4. The Government states that it has postponed the mandatory retirement age and established special employment placement centres for older workers. It has also identified 77 jobs it considers suitable for older workers and for which it recommends giving priority in hiring and provides wage subsidies and grants. The Committee notes this information with interest and would appreciate receiving further information on measures taken to encourage the hiring of older workers in all occupations.

5. Article 3. The Committee notes that the Employment Policy Council addresses a range of employment-related issues, including macroeconomic policies and safety nets, and includes employers’ and workers’ representatives. Please provide further information on the manner in which representatives of other groups of workers affected, such as rural workers, are consulted.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for 1 June 1998 to 31 May 2000, as well as information supplied in response to previous comments.

1. Articles 1 and 2 of the Convention. The Government states that the economy has steadily recovered since the financial crisis, and conglomerates are undergoing restructuring. The participation rate increased from 60.7 per cent in 1998 to 61.7 per cent in July 2000. Unemployment decreased from 6.8 per cent in 1998 to 3.6 per cent in July 2000. In reply to previous comments, the Government states that fiscal, monetary and trade policies are all aimed at promoting the general health of the economy and attracting investment, which lead to employment promotion. The Government has instituted a range of programmes to promote employment, including facilitating job mobility, encouraging employment of workers with disabilities, creating public-sector jobs for the long-term unemployed, and vocational guidance and apprenticeships for youth. Please continue to provide information on the outcome of employment promotion measures.

2. The Committee also notes the progress made in increasing the participation rate of women, from 41.9 per cent in 1985 to 47.4 per cent in 1999. The Government has established a childcare leave subsidy and day care centres, and provides grants and wage subsidies. The Committee would appreciate further information on means other than wage subsidies to encourage employers to hire more women workers, such as focused training to ensure that their skills are in demand.

3. The Committee notes that the Government is encouraging development of private placement agencies, and that 77 per cent of placement agencies are now fee-charging. In light of the critical role of placement services in promoting employment and concern for equality of access to employment, the Committee requests further information on measures taken to ensure that effective placement services are available to all, regardless of ability to pay.

4. The Government states that it has postponed the mandatory retirement age and established special employment placement centres for older workers. It has also identified 77 jobs it considers suitable for older workers and for which it recommends giving priority in hiring and provides wage subsidies and grants. The Committee notes this information with interest and would appreciate receiving further information on measures taken to encourage the hiring of older workers in all occupations.

5. Article 3. The Committee notes that the Employment Policy Council addresses a range of employment-related issues, including macroeconomic policies and safety nets, and includes employers’ and workers’ representatives. Please provide further information on the manner in which representatives of other groups of workers affected, such as rural workers, are consulted.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

Further to comments in paragraph 152 of its General Report (71st Session, November-December 2000), the Committee notes with interest the various measures implemented by the Government to improve safety nets. The Government has expanded eligibility for benefit, prolonged the duration of benefit by 60 to 90 days, and extended the scope of coverage to include enterprises with as few as five workers, and temporary and part-time workers. Other safety net measures include extending medical insurance and providing loans and grants to the long-term unemployed.

In a direct request, the Committee raises other issues concerning employment promotion measures, the participation of women and older workers in the labour market, placement services and consultation with representatives of all groups affected by employment policies and programmes.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

Article 1 of the Convention. The Committee notes the information contained in the Government's thorough report for the period covering January 1996 to June 1998. The Government indicates that there has been a slight increase in the economically active population and the number of employed. The unemployment rate increased from 2 per cent in 1996 to 3 per cent in 1997. The Government describes in detail the relevant legislation and some programmes implemented. The Committee would appreciate if the Government would continue to supply information on the programmes implemented, participation rates, and the progress made. In light of the recent financial crisis in the region, the Committee would also be interested in receiving further information on specific measures taken under article 26 of the Employment Policy Act, and articles 15, 28 and 29 of the Basic Employment Act.

The Government's report provides detailed information on the law and programmes aimed at promoting the employment of women. The participation rate for this category of workers rose from 41.9 per cent in 1985 to 49.5 per cent in 1997, and women now comprise 41 per cent of all workers in paid employment. The unemployment rate for women was 2 per cent in both 1996 and 1997. The Government states that its strategies for increasing the participation rate of women include expanding and subsidizing child care, providing targeted training courses, and encouraging the growth of part-time employment. The Committee would appreciate further information on what steps have been taken to ensure that there is sufficient full-time work such that women may freely choose between part-time and full-time work. The Government's report also indicates that youth unemployment was 6 per cent in 1996 and 8 per cent in 1997, and that programmes for youth include job counselling. The Committee asks the Government to indicate whether other programmes for youth, such as apprenticeships, exist or are envisaged. The Committee also notes the special programmes for older workers and workers with disabilities, which have had a positive effect on promotion of employment for these categories of workers.

Article 1(2)(c). In reply to previous comments, the Government points out that article 2 of the Employment Security Act prohibits discrimination in employment on the basis of sex, religion, and social or marital status. The Committee notes this information and asks the Government to clarify whether discrimination on grounds of race, colour, political opinion, or national extraction is also prohibited.

Article 2. The Government states that its policy is considered within the framework of a coordinated economic and social policy, as it aims to promote employment primarily through promoting economic growth while providing a social safety net. The Committee notes this information and would appreciate receiving further details on how fiscal, monetary and trade policies take into account the effects on employment.

The Government explains that consultations on implementation of employment policies occur within the tripartite Policy Council, which deals with employment policy. The Committee requests further information on whether representatives of other sectors of the economically active population, such as rural and informal sector workers, are consulted. It would also appreciate receiving further information on whether consultations take place concerning broader issues related to employment promotion, as required under Article 3, in conjunction with Article 2. Lastly, the Committee notes that a Tripartite Social Compact was signed in 1998. The Government is invited to provide details on this Compact in its next report.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes with interest the Government's first two reports for the periods ending June 1994 and December 1995. It appreciates the quality of the information provided and also notes with interest that the unemployment rate remained very low during the periods under consideration and was around 2 per cent at the end of 1995. It would be grateful if the Government would include information in its next report on the following points.

1. The Committee notes with interest the employment policy principles established by the Basic Employment Policy Act of 1993. It also notes the provisions of the Employment Security Act of 1994, which prohibits discrimination on grounds of sex, religion, social status or marital status. Please also indicate the provisions which guarantee the free choice of employment without distinction on the other grounds set out in Article 1, paragraph 2(c), of the Convention. Please also supply the texts referred to in the second report and, in particular, the decrees issued under the above Acts.

2. The Committee notes that the principal labour market policy measures are intended to promote the employment of specific groups of the population, such as women, young persons, older workers and workers with disabilities. Please continue to supply as detailed information as possible on the results achieved by these various measures, both as regards the groups concerned and the employment situation in general.

3. The Committee notes the emphasis placed on training for employment. It notes that in November 1996 the Government provided its first report on the application of Convention No. 142, which it proposes to examine at its next session.

4. Please provide more detailed information on the nature and volume of the activities of the employment services, together with relevant available statistics. Please indicate the measures taken to coordinate the activities of public employment services with those of private employment agencies.

5. The Committee would be grateful if the Government would supplement the information provided on labour market policies by information (as requested in the report form adopted by the Governing Body - see under Article 1) on how the measures taken in other fields of government action contribute to the promotion of employment within the framework of a coordinated economic and social policy (Article 2). Please in particular describe how the principal measures in such fields as investment policy, fiscal and monetary policies, trade policy and prices, incomes and wages policies promote the achievement of employment objectives.

6. Article 3. The Committee notes with interest the information on the consultation of organizations of employers and workers during the formulation of the Basic Employment Policy Act, the opinions that were expressed and the manner in which they were taken into account. It notes that the Policy Council established by the Act includes representatives of employers and workers. The Committee recalls in this respect that the Convention not only provides for the consultation of representatives of persons affected during the formulation of employment policies but also their cooperation in the implementation of these policies. Please provide information on the consultations held in the Policy Council, and on any other consultation arrangements relating to employment policy within the meaning of the Convention.