[2020 National Audit] Employment Rate of Specialized High School Graduates in SMEs 'Plummets'... Low Effectiveness of Workforce Development Projects

Employment and Industry-Academia Customized Program

Source: Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The effectiveness of the specialized high school workforce development project for small and medium-sized enterprises (SMEs) has been steadily declining.

According to data submitted by the Ministry of SMEs and Startups to Shin Jeong-hoon, a member of the National Assembly's Industry, Trade, and SMEs Committee from the Democratic Party of Korea, the employment rate of students who participated in the employment and industry-academia customized class program, signed industry-academia agreements, completed customized training, and were employed by the contracted companies decreased from 95.6% in 2016 to 82.8% in 2017, 76.3% in 2018, and 68.8% in 2019.

The specialized high school workforce development project aims to connect specialized high school students with employment in SMEs through customized vocational education linked to industrial sectors and to supply on-site personnel to SMEs. The project method involves specialized high schools signing industry-academia agreements with SMEs, operating customized training programs desired by SMEs on-site, and then linking graduates to employment at the contracted companies.

Since 2015 until August of this year, the Ministry of SMEs and Startups has spent a total budget of 166.632 billion KRW as subsidies for SME specialized high schools. By year, the budget increased from approximately 26.4 billion KRW in 2015 to 28.7 billion KRW in 2016, and 31.2 billion KRW in 2019. In addition to subsidies, 8.242 billion KRW was spent on operating costs for dedicated institutions during the same period.

Currently, out of 460 specialized high schools nationwide, 215 schools (46.7%) are designated as SME specialized high schools.

Meanwhile, an analysis of the workforce shortage rate by city and province for SMEs with fewer than 300 regular employees nationwide showed that the national average was 8.3% in the first half of this year. Daejeon had the highest rate at 14.1%, followed by Sejong at 11.4% and Gyeongnam at 11%, indicating difficulties in workforce recruitment.

Assemblyman Shin Jeong-hoon expressed concern, saying, "The specialized high school workforce development project is a very good initiative to actively nurture field-customized talent to resolve mismatches between job seekers and companies, thereby simultaneously alleviating youth unemployment and corporate recruitment difficulties, but the employment rate is steadily decreasing."