Transcript Unemployment, labour market, free movement of workers

UNEMPLOYMENT, LABOUR
MARKET, FREE MOVEMENT
OF WORKERS
Michal, Romana, Simona and
Thomas representing the Group B4
STRUCTURE
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1) Definition of unemloyment, the types, causes
and effects
2) Unemployment in EU and EU policy
3) Employment and labour market policy of
national states
4) Free movement of labour with examples
UNEMPLOYMENT - DEFINITION
Unemployment is the state in which a person is
without work, available to work, and is currently
seeking work.
 Unemployment is share of adults in specific
categories who do not participate in the labour
market
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WHO IS UNEMPLOYED?
able-bodied person (whithout serious handicaps)
 willing to work
 actively seeking work
 unable to find a job
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TYPES AND CAUSES OF
UNEMPLOYMENT
Causes:
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on demand-side/ on supply-side
objective and subjective
Types:
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Cyclical
Structural
Frictional
Seasonal
Hidden
Long term
EFFECTS OF UNEMPLOYMENT
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Lose of workers qualification
Increase of criminality
Lose of production effectivness
Worsening of econimical and social situation
Bustup of marriage (family)
Worsening of health conditions (psychical and physical)
Destruction of ethical values
Radicalization of affected groups
Social effects can be reduced by social benefits for
unemployed people
ECONOMIC AND SOCIAL COSTS
A loss of production and output
 A misallocation of resources
 A decline in labour market skills
 A cost to the government
 An excess supply of jobs
 Increased domestic violence, crime, health
problems and negative psychological effects
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UNEMPLOYMENT IN EU
EU´s employment miracle ended up in the second
half of 70´s.
Is it sufficent to explain it as effect of decline of
growth?
What could be the other reasons?
Wrong macro-economic policy, real wages rigidity,
structural changes, long duration of unemployment
benefits
THE PAST
GROWTH OF GDP/GNP VS. GROWTH
OF EMPLOYMENT
REAL WAGES RIGIDITY
SKILLS MISMATCHES
US VS. EU LONG-TERM
UNEMPLOYMENT
THE VARIETY
EU EMPLOYMENT POLICY
´Employment´ policy since early EU history
Treaties of Paris (1951) and Rome (1957)
Social Action Programme (1974 – 1976)
White Paper Growth, Competitivity,
Employment (1993)
Amsterdam Treaty/ Luxembourg Process:
European Employment Strategy (1997)
LISBON STRATEGY (2000)
 Improve
employability and reduce skills
gaps
 Priority
to lifelong learning
 Increasing
 Furthering
employment in services
all aspects of equal
opportunities
UNEMPLOYMENT POLICY IN EU
27 STATES 27 DIFFERENT APPROACHES
4
European social models = 4 employment
policy models based on the level of EPL
(European Protection Legislation) and
Unemployment Benefits
 Different
market models
Flexible markets with low employment protection
 Protective markets with strong protective legislation
The flexible model is more efficient in terms of
employment
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UNEMPLOYMENT POLICY IN EU
COMMON TOPICS ACROSS THE EU
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Financial support
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Life Long Learning
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Support through Employment Offices, special
recruiting agencies (Adecco, Manpower)
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Non-profit organizations
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Participation on European projects
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Part time jobs
LABOUR MARKET POLICY
Active labour market policies:
 Training, re-training and re-qualification
 Programmes of public works
 Financial incentives to self-employment
 Financial incentives for employers to create new jobs
 Job placement programmes (job-finding and job-matching
services)
 Consultative services (identification of capabilities of
clients and training sessions how to find a job)
 Special programmes for disabled and other dispriviledged
persons
Passive labour market policies:
 Unemployment benefits (unemployment insurance
benefits, tax-based benefits)
FREE MOVEMENT OF LABOUR
article 39 of the EC Treaty
 transitional period of 7 years
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FEARS OF FREE MOVEMENT OF LABOUR
mass immigration
 welfare tourism
 brain drain
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ENLARGEMENT IN 2004
1 group(Belgium, Finland, France, ur regimes
Germany, Greece, Luxembourg and Spain)
 2 group (Austria, Denmark, Italy, the Netherlands
and Portugal)
 3 group (Ireland and the UK)
 4 group (Sweden)
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changes in 2006
THE SWEDISH ENLARGEMENT DEBATE
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pro-arguments:
 welfare abuse
 labour market would be negatively affected
 mass migration
counterarguments:
 originally pledged to open
 low labour mobility
 dynamic migrants
THE CASE OF IRELAND
 economy
in a strong position
 47,500 work permits in 2003
 protecting the welfare system
 Habitual
Residence Condition (HRC)
THANK YOU
FOR YOUR
ATTENTION