The Future of Jobs and Human Resource Development Strategy

The Future of Jobs and Human Resource Development Strategy. Researcher in Charge: Ho Young Oh / Senior Research Fellow Summary This study projects changes in the vocational world expected to occur within the next 1020 years due to technological innovation as part of the Fourth Industrial Revolution. Expert surveys and focus group interviews (FGI) were carried out to examine changes in prospective jobs, shifts in skill demands, and human resource development strategies, and to analyze the impacts of computerization on jobs according to industry, occupation, demographic characteristics, and major. Anticipated changes in the finance industry and related occupations due to the spread of FinTech are examined and human resource development strategies are suggested as countermeasures. Keywords: Fourth Industrial Revolution, job shock, computerization, FinTech, human resources. I.. Research Background and Purpose. ■ Technological innovation including artificial intelligence (AI), robotics, big data, and the Internet of things (IoT) requires comprehensive human resource development strategies, instead of the status quo, to cope with the Fourth Industrial Revolution. • As traditional systems of human resource cultivation and utilization have become less efficient in the age of technological innovation, robots and AI are expected to supplant humans in many of the roles they previously performed. - To promote social change and create a new competitive edge in the Fourth Industrial Revolution, innovation is urgently needed in a Korean education and training system that was optimized for industrial-age mass production. ■ This research aims to anticipate future characteristics of society which is expected to change drastically due to technological innovation that will reshape the vocational world and, on the basis of our research results, seek new human resource development strategies to adapt to future society. • Labor market shocks caused by technological and socio-economic changes and technological innovation are predicted. In addition, the impact of technological shocks on finance industry jobs and policy implications for human resource development is suggested with a focus on FinTech.. II. Research Overview 1. Research Process.

■ Expert surveys were conducted to predict changes in the vocational world and skill demands caused by technological innovation and social changes and to derive development strategies for cultivating and utilizing human resources required by society in the future. • Cognitive and problem-solving capabilities are expected to remain important in the future. However, in contrast, communication ability, numeracy, and physical ability are deemed to be less important since they are highly likely to be replaced by machines. - To respond to the Fourth Industrial Revolution, education policy is the most important among education, training and labor policies. In particular, nurturing talent through secondary education is the key to improving national competitiveness. ■ The impact of computerization on the vocational world was analyzed by applying to Korean data the probability of various occupations in the U.S. being replaced by computers as estimated by Frey & Osborne (2013). • By industry, the share of employees in occupations at high risk of replacement by computers is highest in transportation (81.3%) followed by wholesale and retail (81.1%), finance and insurance (78. 9%), business facilities management and business support services (70.3%). • By occupation, the ratio of workers in job categories at high risk of replacement by computers to the total number of employees is the highest among sales workers (100%), followed by equipment, machine operating and assembly workers (93.9%); trades and technical workers (82.9%); and unskilled laborers (73.7%). • By demographic characteristics, the probability of replacement by computers shows that the intensity of job shocks driven by technological innovation is expected to be greater among men than women. The elderly (aged 50 and over) and the under-educated (high school or under) will be more vulnerable. ■ Due to the spread of FinTech, the finance industry has already undergone or is expected to undergo considerable changes in the future. IT innovation will be a core driving force behind the transformation. • The jobs expected to be more necessary or newly-emerging due to the wide adoption of FinTech in the finance industry include data analysis, product planning for new services, IT-related jobs including design, development, and operation of service systems, and marketing for newly provided services. - To nurture a new workforce in the finance industry, IT education needs to be enhanced, with an emphasis on data science and technology. In addition, the current workforce needs to be re-educated to conduct the tasks of IT-related customer support and to develop the ability to transition to sales and marketing for FinTech-based services. 2. Research Result ■ Experts were surveyed to determine the priorities and the main focus of human resource development policy required to effectively respond to the Fourth Industrial Revolution. • In terms of significance, current and future high-priority tasks were suggested as follows: 16) improve quality of education (expand public investment in higher education); 5) promote innovation in teaching and study methods including transformation from lesson/lecture-based learning to project-based learning (PBL) and flipped classrooms; 18) enhance colleges’ capacity to innovate as innovation ecosystem hubs (reinforce research competency, improve research efficiency through industry-academia cooperation programs); 21) diversify and elevate vocational training; 22) improve accessibility of vocational training (establish inexpensive vocational training programs open to anyone.

who wishes to participate); 27) establish work-learning-welfare connected programs •. In terms of significance, current low-priority tasks that will be future high priorities are suggested as follows: 29) introduce educational leave for workers (sabbatical years for learning); 11) recruit teachers from a more diverse pool (e.g., those who did not graduate from teachers colleges, those experienced in other fields, and guest teachers as part of industry-academia cooperation programs); and 28) develop new labor standards that reflect the intelligent information age. <Current and Future Significance by Policy Challenge>. III. Policy Suggestions ■ With current education and training systems, it is impossible to adapt to a future society where computers and robots will surely supplant a considerable number of jobs in manufacturing, trades and technical fields, and clerical work. To meet the needs of a new age, new education and training are required. • Education policies should be proposed that help students acquire knowledge, techniques, and skills needed in the vocational world in order to cultivate their future viability and adaptability. • In industrial society, education and training seek to foster a uniform, standardized workforce, and most of the skills currently taught and fostered by schools and vocational training institutes can be said to be suitable for manufacturing, trades and technical fields, and clerical work. - Teacher-centered unidirectional lectures, classes without student interaction, standardized curricula irrelevant to students’ individual achievement levels, interests, and aptitude should be improved urgently. <Strategies and Policy Challenges of Human Resource Development> Counterstrategies. Policy Challenges.

Centralization and standardization → Decentralization and diversification Training general-purpose, standard workforce →Producing professionals in each field. • • •. Reorganizing the governance system for school education Relaxing requirements for establishing schools and enhancing instructor flexibility Expanding school choice. •. Focusing on labor inputs → Concentrating on capacity building. • •. Providing personalized learning for each student through the introduction of a credit system not tied to grade levels Reforming teaching and learning methods by adopting project-based learning (PBL) and flipped classrooms, while deviating from the traditional concentration on subject/lecture-based learning Developing teaching and learning methods using AI learning robots Strengthening education in technology, the arts and sports, and career counseling; conducting full-scale adoption of computer and software education; and introducing STEAM (Science, Technology, Engineering, Arts, Mathematics) education Strengthening innovation capacity of universities as the heart of innovation ecosystems Operating innovative, virtual universities Increasing university autonomy including the introduction of self-regulated admissions Introducing educational leave system for workers Establishing new labor standards that reflect the emerging intelligent information era Expanding flexible working arrangements and reducing working time. •. Producing discipline-based • workforce → Cultivating • interdisciplinary talent • Dividing labor among • government • ministries/agencies → • Establishing collaborative structure based on jobs learning, and welfare Note: This summarizes Section 2 Policy Challenges of Human Resource Development in Chapter 5. Source: Prepared by research staff.