Korea Ranks 24th Among 38 OECD Countries in Human Resource Competitiveness...Low Scores in Talent Inflow and Growth Potential Indices

Leading to Results Showing Low Labor Productivity

[Asia Economy Reporter Park Sun-mi] Despite South Korea ranking at the bottom among OECD countries in terms of the matching level between occupations and education, the proportion of investment in human resource development such as vocational training is low, while the budget share allocated to direct job creation is about three times that of OECD countries.

On the 9th, the Federation of Korean Industries analyzed the 'Global Human Resource Competitiveness Index' and found that South Korea's human resource competitiveness ranked 24th out of 38 OECD countries, placing it in the lower-middle tier. In particular, the ranking in the 'Attractiveness' category, which measures factors such as the inflow of foreign workers and employment of women, was 33rd; the 'Growth Potential' category, which measures talent growth potential through vocational education and skill development, was 25th; and the 'Occupational and Technical Competency' category, including labor productivity, was 28th, all relatively low.

Looking at detailed indicators by category, in the Attractiveness section, the rate of overseas inflow for higher education was 2.8%, ranking 33rd out of 37 OECD countries. The proportion of female workers in high-skilled jobs (managers, professionals, technicians, etc.) was also 27th out of 37 OECD countries, indicating low inflow and utilization of excellent foreign human resources and female high-level talent.

In the Growth Potential category, government expenditure per capita on higher education was only $5,773, ranking 31st out of 37 OECD countries. Compared to countries with high rankings in the Global Human Resource Competitiveness Index, such as Luxembourg ($45,567) and Switzerland ($25,713), this level was significantly lower.

The vocational education enrollment rate for the population aged 15-24 was 14.3%, ranking 22nd out of 34 OECD countries. In the evaluation of worker skill development, which was scored and assessed, South Korea ranked 23rd out of 38 OECD countries with 59.64 points, showing poor performance not only in education but also in actual vocational skill development.

The Federation of Korean Industries analyzed that this situation ultimately leads to a large mismatch between education and occupation and low labor productivity. The comprehensive indicator representing the results of human resource innovation, the 'Occupational and Technical Competency' category, ranked 28th out of 38 OECD countries, a relatively low position.

In particular, in the sub-indicator 'Skill-Matching Degree,' South Korea ranked last (30th) among comparable OECD countries (30 countries), and labor productivity was ranked 22nd out of 38 countries, placing it in the lower-middle tier.

Kim Bong-man, head of the International Headquarters at the Federation of Korean Industries, said, "With the acceleration of digital transformation due to the COVID-19 pandemic and the advancement of new technologies such as artificial intelligence (AI) and automation, innovation in human resources has become more important than ever," adding, "There is a need for innovative changes in policies that have focused on maintaining the status quo, such as direct job creation, rather than investing in the development and innovation of human resources."

This content was produced with the assistance of AI translation services.