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A Basic Study on Job Mobility Mapping of Industries in Employment Crisis Regions
A Basic Study on Job Mobility Mapping of Industries in Employment Crisis Regions
  • Table of Contents

    Chapter 1. Introduction (Yoon-Gyu Yoon)

    Chapter 2. Current Status and Changes in Policy Support for Employment Crisis Regions (Yoon-Gyu Yoon)

    Chapter 3. Job Mobility between Regions and Industries among the Insured People in Shipbuilding Industry in Tongyeong City (2010~2018) (Dongwoo Kang)

    Chapter 4. Job Mobility between Regions and Industries among the Insured People in Shipbuilding and Automobile Industries in Gunsan City, North Jeolla Province (2012~2018) (Donghoon Yoo)

    Chapter 5. Summary and Conclusion (Yoon-Gyu Yoon)

     

  • SUMMARY

    This study mapped job mobility between regions and industries in employment crisis regions including Tongyeong and Gunsan City. The results of this study are expected to contribute to developing future employment and industrial policies such as outplacement support, education, and training services in regions and industries expected to undergo employment crisis and industrial restructuring to induce smooth labor mobility while alleviating employment shock.

    1. Changes in policy support for employment crisis regions and Japan’s case

    Recently, economic and employment aggravation in regions that are home to declining industries as a result of industrial restructuring is emerging as a major social issue. The government designated Pyeongtaek as the first employment crisis region in 2009, followed by Tongyeong (2013), Geoje, Goseong, Gunsan, Jinhae, Mokpo, Yeongam, and others (2018). Shipbuilding industry was designated as an industry for special employment support. With such designations, there is various policy support in place to promote employment stability in the respective regions and industries.

    First of all, Japan’s policy experience related to the design of policy support for employment crisis regions provides useful implications for us. In the 2010s, the focus of Japan’s policy support for employment crisis following the industrial decline in certain regions changed from employment maintenance to outplacement support to other companies, industries, and occupations. Japan’s experience of the policy transition toward labor mobility and outplacement support could serve as a useful reference as Korea designs policies for better effectiveness and performance in the support for employment crisis regions. Secondly, Korea, like Japan, provides various support in response to regional employment crises, such as employment maintenance for business owners, outplacement support including job change and startup, job creation in the local economy, and financial support for unemployed persons, but most of this support is provided within employment insurance system like Japan and is thus limited in delivering sufficient support to the underprivileged groups of people. In the case of Japan, there are criticisms that re-employment training is not effective because even though crisis-hit businesses are mandated to provide outplacement training to employees, there is rarely any incentives for business owners. In the case of Korea, there are measures to increase the incentive for participating in such training programs by subsidizing reemployment training for not only the business owners, but also the employed individuals.

    Lastly, short-term employment maintenance policies for employment crisis regions are meaningful in that they gradually absorb the shock while preventing a rapid collapse of the local economy and employment. However, as was seen in Japan’s experience, policies to maintain labor are not sustainable for declining industries that are difficult to recover with clear signs of falling productivity. Therefore, it is important to identify alternative industries or reconfigure the industrial structure with a mid to long-term perspective in order to promote vigor and create jobs in the local economy. Furthermore, there should be a system to forecast future adjustments or declines in industries expected to undergo permanent falls in productivity amidst rapid technological changes in order to proactively respond to potential employment crisis, minimize the social cost, and induce efficient labor mobility.

    2. Job mobility between regions and industries among the insured people in shipbuilding industry in Tongyeong City (2010~2018)

    Chapter 3 analyzed characteristics of job mobility between industries and regions between 2010~2018 by extracting 7,573 insured people in shipbuilding industry in Tongyeong City as of June 30, 2010 based on employment insurance DB. Size of mobility by industry showed that the industry that people move to differed by age group. Many of those aged 15~29 or 30~39 changed their job to manufacturing, technology-related service, and construction industry. Those aged 40~49 showed a similar trend to those aged 15~39 and had a large number of insured people in ‘land passenger transport industry’. Those aged 50 or above had quite a few number of insured people in ‘real estate-related service industry,’ ‘marine transportation industry,’ and ‘legislative and general government affair industry.’ In terms of mobility to other regions, the majority of destinations were metropolitan cities and adjacent areas that are hub to shipbuilding industry. There was no age variation in the general trend of destination, but there was a difference in the ratio of destination by age group. Those aged 39 or below had a relatively higher proportion of people who moved to physically distant regions for work. On the other hand, those aged 40~49 had a lower ratio of long-distance mobility compared to those aged 39 or below and those aged 50 and above. Implications from the above analysis results are as follows. Firstly, in recognition of the fact that different age groups show different tendencies in job transfer during restructuring process, there is a need to design job change support customized to the workers’ age groups. Secondly, it is important to build job change support strategies by identifying characteristics of industries that are similar with the industry being restructured and reflecting the changing job demand at different stages of industrial restructuring. Thirdly, there should be ex-post reviews of the impact that regional employment policy in response to industrial restructuring has on the respective region in order to identify possible measures for improvement.

    3. Job mobility between regions and industries of insured people in shipbuilding and automotive industry in Gusan City, North Jeolla Province (2012~2018)

    Chapter 4 explores characteristics of employment crisis and job mobility between regions and industries by examining the job mobility flow before and after employment crisis among those working for shipbuilding and automotive industry in Gunsan City, North Jeolla Province. More specifically, employees who used to work for shipbuilding and automotive companies in Gusan City, North Jeolla province as of June 30, 2012 were tracked and studied in terms of their job mobility route. Firstly, employment status of shipbuilding workers shows that there is a dramatic decline in the number of insured people working for shipbuilding industry after 2012. Between 2016 and 2017, which is when employment crisis hit, the number of insured people in shipbuilding industry fell by more than 65%. The number of people working in this industry already decreased by 32% in as early as 2013, which is before the employment crisis, leading to a large-scale job mobility, and this can be interpreted to a precursor to employment crisis. It was also found that the majority of insured people who relocated to a different region moved to companies in Ulsan Metropolitan City and Geoje City, South Gyeongsang Province, which both have a large shipbuilding industry. Employment status of workers in automotive industry shows that the ratio of insured people in automotive industry relative to the total number of insured people as of June 30, 2018 is 51.0%. Compared to shipbuilding industry (30.2%), automotive industry has a relatively higher ratio of maintaining job in the same industry. This is related to the nature of automotive industry that requires a minimum number of workers in operation and later occurrence of employment crisis than shipbuilding industry. A large part of regional mobility was toward Incheon Metropolitan City, Iksan City of North Jeolla Province, and Pyeongtaek City of Gyeonggi Province, which are cities where plants of GM Korea or other suppliers are located, and this indicates a possibility of intracompany movement.

     

Yoon-Gyu Yoon's other publications : 18
{Research Series} posts
No Title Author Date Attach
18 A Study on Labor Market Transition of the Youth Yoon-Gyu Yoon, Insong Jang, Selim Choi, Sunghun Cho December 28, 2018 A Study on Labor Market Transition of the Youth
17 Innovative SMEs and Youth Job Creation Yoon-Gyu Yoon, Hyeongjun Bang, Yongjin Nho December 28, 2018 Innovative SMEs and Youth Job Creation
16 A Basic Study on Job Mobility Mapping of Industries in Employment Crisis Regions Yoon-Gyu Yoon, Dongwoo Kang, Donghoon Yoo December 28, 2018 A Basic Study on Job Mobility Mapping of Industries in Employment Crisis Regions
15 Regional Employment Policies: International Case Studies Yoon-Gyu Yoon, Sung Gug Jung, Yong-Jin Roh, Junwook Hwang, and Jong-Won Woo May 20, 2014 Regional Employment Policies: International Case Studies
14 Labor Market in Busan Metropolitan City: Analysis and Employment Policy Options Yoon-Gyu Yoon, Sangho Lee, Jang-Soo Ryoo, Seong-Ik Park, Jang-sik Cho, Seong-Soo Ok, and Ok-Soon Seo December 30, 2013 Labor Market in Busan Metropolitan City: Analysis and Employment Policy Options
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