Policy Tasks to Generate Jobs in the Road Industry

Yongseok Ko et al., Managing Director of Road Policy Research Center

Korea Research Institute Human and Settlement

Summary

1. (Job creation policy in the road industry) The Korean government has focused on creating quality jobs as the highest priority. The road construction industry has been a driving force behind economic development and has made substantial contributions to job creation.

2. (Unclear rules on the road industry) While other industries are clearly defined in the legal system, there are no clear rules on road construction, which makes it difficult to produce basic statistical data or develop policies in relation to job creation.

3. (Low quality jobs in the road industry) Jobs in the road industry are not popular among younger workers due to perception as “3D” industry, low wages and poor working conditions. Lack of workers has been mostly resolved by foreign immigrant workers.

4. (Changes in working conditions thanks to technological development) Low-wage and unskilled workers are highly likely to decrease and it is necessary to respond to changes in job descriptions and level of required skills, introduction of new businesses and jobs, changes in employment terms, and so forth.

5. (Competitiveness of the road industry in preparation for increasing inter-Korean exchanges) Skilled human resources that have technologies for planning and construction of SOC such as roads cannot be nurtured for merely a short period of time. To prepare for potential increase in exchanges between North and South Korea, skilled human resources should be nurtured starting now.

Policy Implications

1) To create more jobs by developing the road industry, a legal system and organization dedicated to the road industry should be established like in railway and logistics industries.

2) Continuous R&D investment is needed to effectively apply new technologies to the road industry in order to create added value and jobs.

3) Public campaigns should be launched to change the existing perception toward the road industry and promote it as a sector that provides creative and reasonable jobs.