We predict the next round of employment adjustment will largely bypass regular employees and impact the rapidly growing segment of non-regular employees. In the worst case scenario, the pace will surpass previous adjustments and lead to an employment rate of 10% by 2010. The proposed ban on temp staff workers in the manufacturing sector would hurt more than help by limiting opportunities for new hiring. We recommend a policy that enhances re-employment opportunities through occupational training and better job matching, and at the same time expands the safety net of employment insurance.