Protecting people, rather than specific jobs, plays a key role in promoting labour-market inclusiveness and dynamism. Effective unemployment benefits reduce inequality, and raise productivity by facilitating a good match between workers’ skills and job requirements.

Many people with health problems or disabilities leave the labour market permanently even if they still can and want to work. This can lead to low income and reduced social engagement.

Economic activity has contracted less in Korea than in other OECD countries, thanks to the prompt and effective reaction of the authorities to contain the spread of the COVID-19 virus and to the wide-ranging government support to households and businesses. Nevertheless, the pandemic generates strong headwinds.

One in seven working-age adults identifies as having a disability in OECD countries, a share that is also substantial and growing among young people (8% in 2019). Many of them are excluded from meaningful work and have low levels of income and social engagement.

The deep and rapid changes in the world of work driven by the digital and green transformations as well as population ageing have been associated with greater job instability, with potential costs for companies, workers and society. The unprecedented labour and skill shortages that emerged during the recovery from the COVID-19 pandemic have raised further the importance of developing and retaining talent.

Policies to promote employee health and well-being not only protect from occupational risks, but also provide benefits for individuals and employers. Unhealthy lifestyles, characterised by high levels of stress, sedentary behaviour and poor eating habits, affect the health of employees and negatively impact workplace productivity.

This report assesses whether training workers in small and medium-sized enterprises (SMEs) in Korea is adequate, relevant, and aligned to skills needs.