Job seekers who participate in job training programs more than once have a higher chance of short-term employment compared to those who attend only once, according to a recent analysis. The effect is particularly pronounced when participants switch to different fields of training rather than repeating the same one.
On September 24, the Ministry of Employment and Labor announced that the government plans to increase its budget for job training in the upcoming year. The aim is to expand and reform training programs to focus on artificial intelligence (AI) capabilities and advanced industries, while enhancing demand-driven training that aligns with changes in industry and job structures.
The flagship program, K-Digital Training (KDT), will receive 608.9 billion won next year to support approximately 48,000 individuals. This initiative involves collaboration with private innovative training institutions and top universities to provide practical training in advanced fields such as AI, robotics, and semiconductors.
The K-New Deal Academy for youth will also see a significant expansion, increasing from 10,000 participants this year to 50,000 next year, with a budget of 498.5 billion won. This program offers job training and practical experience led by large companies in fields preferred by young people, with higher training costs and allowances allocated for regions outside the capital area.
This initiative comes in response to a recent decline in youth employment rates. The employment rate for individuals aged 15 to 29 was 44.1% last month, down 1 percentage point from the same month last year. The number of employed individuals has also decreased for 46 consecutive months, dropping by 143,000.
The government aims to significantly expand job training to boost youth employment rates. It is believed that a combination of increased training opportunities and a tailored approach based on participants' previous training history and employment status can yield positive results.
Notably, repeated participation in job training has been shown to positively impact re-entry into the labor market. A report published by the Korea Employment Information Service analyzed data from 454,395 job training participants using performance evaluation data from last year's publicly funded job programs. The analysis indicated that repeated participation has a beneficial effect on re-entering the labor market.
Among last year's job training participants, 97.4% (442,723 individuals) were single participants, while 2.6% (11,672 individuals) participated more than once. Those who repeated training had an average of 2.02 training sessions, with a total training duration averaging 172.9 days, compared to 91.5 days for single participants. However, the average duration per session was shorter at 85.6 days for repeat participants, indicating a trend toward completing multiple shorter training sessions rather than one long course.
After adjusting for observable characteristics such as gender, age, and education level, propensity score matching analysis estimated that the employment probability within six months after training for repeat participants was 7.47 percentage points higher than for single participants. However, there was no statistically significant difference in wage levels. Researchers concluded that repeated training increases the likelihood of re-entering the labor market without a significant short-term wage decline.
The effectiveness of repeated training varied based on the method of participation. Those who completed two training sessions sequentially saw an increase in employment probability of 7.88 percentage points, while those who overlapped training periods experienced a 6.51 percentage point increase. Although the differences in employment effects were not statistically significant, overlapping participants showed relatively higher wage benefits compared to sequential participants. Researchers attributed this to the 'complementarity of skills' acquired by combining different skills in a short period.
Differences were also evident in job selection. Participants who repeated training in the same field had a 4.32 percentage point higher employment probability than single participants, while those who changed fields during their second training saw a 10.26 percentage point increase. The statistical difference between these two groups was significant. However, there were no notable differences in wages between the two methods.
Researchers recommend that job training policies should move beyond merely increasing the quantity of training and instead design participation structures tailored to job seekers' characteristics. Job seekers needing quick re-entry into the labor market should broaden their job search by changing fields, while those seeking quality jobs may benefit from combining multiple skills or enhancing their proficiency in specific occupations.
* This article has been translated by AI.
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