Mamonova A.
PhD Zhukova O.
PhD Petrachkova O.
Donetsk State University of Management
LABOR MARKET CHALLENGES AND
EMPLOYMENT
IN THE EUROPEAN
UNION ON THE EXAMPLE OF GERMAN
The value of labor as
an economic category plays a key role in understanding the major social
problems and phenomena. Labor market is an important and multifaceted
socio-economic institutions of market economy. Achieving full and productive
employment is one of the key tasks of socio-economic policy, the most important
problem of economic science.
The labor market has
a different state. One of the major problems is the presence of the unemployed.
Unemployment - is a macroeconomic phenomenon, which arises from the mismatch
between supply and demand of labor. According to the International Labor
Organization, the unemployed include persons of working age (part of the
economically active population) are currently unemployed but actively seeking
work. The unemployed are usually related to not only dismissed for various
reasons, but also those who voluntarily quit his job and tries to find a new
one. The structure of the unemployed is very complex. So they can distinguish
the following categories: voluntarily left work, entered the labor market after
a break, the first time entered the labor market. The ratio of these categories
depends primarily on the phase of economic cycle in each country. As is known,
identify several main types of unemployment: frictional, structural, seasonal,
and cyclic.
In Germany there are
special factors affecting the formation of the labor market. Among them there
are some that are common throughout the world, but in the zone of the European
Union have some special features. Several years ago, unemployment in Germany
was structural, i.e., especially threatened by low-skilled workers and
employees, today the threat is looming over the representatives of almost all
professions.
Times of full
employment in Germany is far behind. Today, people are forced to the wordless
part time, work on weekends, etc. However, all these negative effects did not
reduce the flow of aliens called "guest workers» (Gastarbeitern) in the
country. Falling wages, weak economic conditions were the causes of the crisis
of unemployment that began in the mid-90's in Germany.
To combat these
negative trends are created special commissions. The starting point of her work
is the principle according to which "help to win." If previously
unemployed could abandon the proposed work, if it does not conform with its
specialty, poorly paid, require moving to another town or for some other
weighty reasons did not present sufficient interest for the unemployed, to
abandon the proposed jobs would be much more difficult after the introduction
of labor market reforms. The average period of unemployment in the EU takes
23.7 weeks per year.
There is a
theoretical concept, which offers the opportunity to test using the Hazard [3]
the extent to which affects the accumulation of experience of the unemployed to
his chances to return to work. This calculation is particularly important in
today's Europe, where there is a long-term unemployment. Phillips curve,
expresses the true relationship between unemployment, on the one hand, and
changes in prices and wages, on the other. Previously projected decline in
inflation in the EU to 1.5%. The European Central Bank aims to keep inflation
below 2%. If the situation should mention the phenomenon of policy tools - it
is essentially an attempt to maintain a constant level of production and
employment levels, although at the cost of higher inflation.
Active
anti-inflationary policies can provide price stability, or at least a
significant reduction in inflation, but this can be achieved with a significant
rising unemployment. To solve the problem of unemployment is important to consider
the theoretical calculations: to reduce unemployment at the desired rate to
ensure economic growth in the ratio of 2:1 or 3:1 (a consequence of the law
Oaken) [5].
Analysis of the
structure of unemployment in many years shows that the higher risk in people
without special education, older middle age. Preference will be mobile and
dynamic professionals with experience and knowledge of foreign languages. At
that time, as social welfare payments, unemployment benefits and child care in
recent years has stabilized, the payments illegally working citizens remain a
big problem the Ministry of Labor of Germany. The unemployment rate in
Germany (in March 2007 – 9,6%) – an indicator of a troubled economic situation
in the country Index Info, calculates the confidence of German businessmen,
regarded as one of the most reliable indicators of the economy in the euro area
in February 2007 fell in comparison with the previous month.
Decline in business
activity means that in the coming months in the industry can be expected to
reduce orders and fewer jobs. Euro-zone economy, aggregate GDP is $ 8
trillion., Yielding only the size of the U.S. economy, lags behind the pace of
recovery in the global economy, as strengthening the positions of the euro
negatively affected the situation in the export sector in the beginning of this
year and as a consequence, the labor market.
The labor market is
one of the most difficult markets. Task of removing or mitigating the factors
that give rise to unemployment, as well as mitigate the negative consequences
of unemployment can be solved only when the employment policy will be part of
the socio-economic policy. Public employment services must work more actively
in the labor market: to disseminate information about job openings to enhance
your job search an unoccupied frequency Stu
working population, needed retraining program designed to ease the transition
of workers from the roller in the fast-growing industries. How these programs
help to increase the level of employment, so they reduce the natural rate of
unemployment. Labor market regulation is becoming one of the most difficult and
important tasks of economic policy today.
Literature:
1. Floren Franz Jos., Wirtschaftspolitik im vereinten Deutschland,
Paderborn, 1999
2. Bach H.-U., Der Arbeitsmarkt in Deutschland, Berlin, 2002
3. Franz Wolfgang, Der Arbeitsmarkt: Eine oekonomische Analyse, Manheim,
1993
4. Ferguson RH Unemployment: Its Scope, and Effect on
Poverty, NW 2000
5. Ovchinnikov, GP, microeconomics, macroeconomics,
St. Petersburg., 1997