earticle

영어

Current economy of Korea under the management of International Monetary Fund undergoes deepening deficit of current balance, mainly owing to its weakened international competitiveness, and because of economic recession and structural adjustment of industry drastic reduction of new employees and early retirement, etc. That is, joblessness problem rises as a serious social problem. Besides, deficit of current balance is becoming serious on account of frailty of international competitiveness. And caused by economic stagflation and structural adjustment, decrease in number of the newly employed and increase in number of the jobless arise simultaneously. Therefore, improvement of productivity is and urgent task to perform in the present situation of Korean economy. So in this research I have gave a serious thought to how to explore methods to raise flexibility of labor market as one way of raising productivity in consideration of change in domestic and overseas labor market. An imminent task for Korean economy to tackle in relation to the softening of labor market is, first, to slow wage raise and improve wage system in conjunction with adjustment of labor Second, rational foundation of overall system, which is essential for flexibility of labor market, should be promptly built. Third, government intervention in labor market is not desirable but in case of its meddling in it is necessary, the government should limit the interference to such critical roles as reinforcement of education and training, on the basis of employment insurance system, which is vital to raising the flexibility. Finally, I emphasize that in order to strengthen competitiveness through flexibility of labor market, labor management and government should be closely cooperative with one another. Ultimately, raising flexibility of labor market is a method of strengthen competitive power through introduction of competition principal in the rigid labor market and through efficient utilization of production factors. Considering that the world is filled with heated atmosphere of competition, it goes without saying that the logics that Korean labor market should run on the basis of through competition principal is too evident.