The European labor Market is still market by the financial crisis and thus, its imbalances in labor costs and the lack of coordination throughout its countries. Europe faces multiple pressure in terms of the GDP growth, which refers to the value of a countries overall output of goods and services at actual market prices and therefore, the threat of growth is more or less not likely to dissolve imbalances between labor costs and other current account positions of European economies.
In order to set out a widespread agenda for Europe’s structural reform, the existing practices in terms of the labor market must be identified from every country and region individually first and afterwards serious actions must be taken. Overall can be said, that Europe has the sufficient strength in order to merge from their current crisis on a path to higher and more sustainable growth. As MicKinnsey identified, with the help of three components the path should be more likely to adapt also for the long-term growth of Europe’s labor market.
Firstly, the reforming of labor markets in the following four main areas: the boosting participation of old workers especially in the Nordic countries, the overall youth unemployment, the balance of the full-time work for woman with regard to higher job positions and the overall reducing of unemployment with regard to restructuring reforms and policies. The next category concerns the enhancement of growth of potential service sectors, such as the competitive advantage by a high level of regulation for instance networking as well as the supporting of better operational efficiency and especially professional services. Moreover, the provisions of standards like educations and infrastructure and the right level across national borders. The last point, that should be also connected with the just mentioned above two ones, are the supporting policies to growth and renewal, like the innovation opportunities in emerging markets, new technology sectors and improving the link between universities and the real business life.
All in all can be said, that in each of these areas Europe has to overcome its weaknesses and in the most efficient way must draw up new strategies in order to implement thus, ensure for long term success of each region. For Europe’s growth the best practices must be applied and explicit goals should lead the countries back to the path of economic and sustainable enhancement for a healthy future of Europe.
Sources: Businessdictionary.com & McKinnsey