UNEMPLOYMENT, LABOUR MARKET, FREE MOVEMENT OF WORKERS

Michal, Romana, Simona and Thomas representing the Group B4

STRUCTURE

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 - DEFINITIONUNEMPLOYMENT - DEFINITION

UnemploymentUnemployment is the state in which a person is without work, available to work, and is currently seeking work.

UnemploymentUnemployment is share of adults in specific categories who do not participate in the labour market

WHO IS UNEMPLOYED?

able-bodied person (whithout serious handicaps)

willing to work actively seeking work unable to find a job

TYPES AND CAUSES OF UNEMPLOYMENT

Causes:

on demand-side/ on supply-side objective and subjective

Types:

Cyclical Structural Frictional Seasonal Hidden Long term

EFFECTS OF UNEMPLOYMENT

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

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 employment in services

Furthering all aspects of equal opportunities

UNEMPLOYMENT POLICY IN EU27 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 modelsFlexible markets with low employment protection Protective markets with strong protective legislation

The flexible model is more efficient in terms of employment

UNEMPLOYMENT POLICY IN EUCOMMON TOPICS ACROSS THE EU Financial support

Life Long Learning

Support through Employment Offices, special recruiting agencies (Adecco, Manpower)

Non-profit organizations

Participation on European projects

Part time jobs

LABOUR MARKET POLICYActive 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

FEARS OF FREE MOVEMENT OF LABOUR

mass immigration welfare tourism brain drain

ENLARGEMENT IN 2004

1 group(Belgium, Finland, France, ur regimesGermany, Greece, Luxembourg and Spain)

2 group (Austria, Denmark, Italy, the Netherlands and Portugal)

3 group (Ireland and the UK) 4 group (Sweden)

changes in 2006

THE SWEDISH ENLARGEMENT DEBATE

pro-arguments:welfare abuse labour market would be negatively affectedmass 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