On March 26, the conference “The Korean success: employment in South Korea, a fascinating story that we can also write in Peru” was developed. The event was organised by the Peruvian Ministry of Labour and Employment (MTPE), the Inter American Development Bank (IADB) and the School of Government and Public Policies of PUCP.

During the conference, the Peruvian and the South Korean case were analysed to understand how South Korea managed to solve the difficulties Peru faces in its’ labour market nowadays.

Economic growth in Peru has been important during the past few years. However, labour productivity remains low. Even though the unemployment rate is 5%, around 59% of workers are under informal conditions. For young people, the situation is more complicated, as the unemployment rate is 9% and the informality rate is 82%. In addition, Peruvian companies have difficulties covering vacancies. In other words, there are employability problems, caused by educational limitations, unsuitable training and lack of information about the professions required by the labour market.

In order to solve the serious employability problems it used to had, South Korea focused on its’ human capital and on connecting that capital with the market’s needs. The Korean Employment Information Service (KEIS) was created, a public employment service (PES), which became well known because of its’ efficiency on reducing the gap between labour supply and demand in an inexpensive and effective way. Public employment services reduce costs for candidates looking for a job as well as for companies recruiting employees.

Following the Korean example, the current Peruvian minister of labour, Daniel Maurate, is confident that PES adequately link labour supply and demand and therefore generate more productivity. In 2012, the Employment Centre was created, a mechanism that gathers twelve Public Employment Services such as: Job Placement Office (work opportunities), Business approach (for formal companies that are recruiting employees), Young people to work (free labour training), Consultancy for people looking for a job (skills strengthening workshops), Unique labour certificate (it certificates identity, working experience and criminal records).

In addition, an agreement was made with the Ministry of Education to create the “Ponte en carrera” observatory, which seeks to exchange information between both ministries to regulate the labour market and determine the professions the market requires. That way, students will be able to make better choices and universities will have to offer courses of study that are adequate for the local labour market.

Moreover, scholarship plans for talented students who live in poverty have been created in order to promote professional development.

Also, in 2014 the MTPE introduced a project to the IADB to improve the effectiveness of Employment Centres by addressing three major issues: coordination with the productive sector, services offered to young people and internal operating processes. The project has gained financing and improvements are expected to be initiated in these centres in 7 of the 24 regions in Peru, which are a priority because of the larger proportion of young people who are unemployed or sub employed there.

Source: http://puntoedu.pucp.edu.pe