A Scheme for Improving HRD for a Flexible Labour Market

Abstract

Companies are expected to adapt themselves to the rapid change of business environment of increasing flexibility in industrial organization in order to maintain and improve business competitiveness in changes of the economic environment. This improvement of flexibility in labour market is also a matter of agreement between the IMF and the government. Flexibility in labour market generally leads to some problems, such as: employment insecurity caused by the increase of underemployment, which results from employment adjustment according to business fluctuation, dual structure of labour market, and high layoff rate due to mobility in labour market. In short, flexibility in the labor market causes problems such as employment unstability and increase of the semi-unemployed. Accordingly, it is necessary to improve working competency as a basic solution to prevent unemployment and to set up plans to vitalize vocational competency development oriented for workers, especially those who are employed. The ultimate goal of this study is to draft a plan for invigorating a vocational competency development, with its focus on the workers in employment, in order to solve structural unemployment caused by flexibility in labour market as a result of changes in the economic environment.