The global situation on labour market

In the fifth year after the outbreak of the global financial crisis, global growth has decelerated and the effect is still continuing. Unemployment has started to increase again.  According to The United Nations,  the number of unemployed in the world reached 197 million in 2012 and was expected to increase further. According to the report, this year unemployment will rise to 5.1 million.

Sources:

http://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/—publ/documents/publication/wcms_171681.pdf

If the economic and labor market trends continue in this way, there is a big risk. The ILO projects 400 million new entrants into labour markets over the next ten years . 400 million new jobs will be needed simply for prevent a further increase in global unemployment.

International Labour Organization, about 39 million people in the labor market is predicted taken. General Director Guy Ryder of ILO   has stated that uncertain economic situations and policies are insufficient to prevent it. In this instance have resulted in lost into investment and low demand for employment force.

According to ILO report at the beginning of the world is most affected by unemployment are young people. About 13 percent of those under the age of 24 is unemployed. The lowest unemployment rate among young people in Germany, Austria and Switzerland.

Sources:

http://www.bbc.co.uk/turkce/haberler/2013/01/130122_un_turkey_unemployment.shtml

http://www.bbc.co.uk/news/business-16695096

Written by Latife Cansu Bayar, Eyüp Dönderalp, Lucija Kacin and Lenka Filova

European Focus on Labour Market

The EU labour market in 2011 was marked by a sudden interruption of the timid recovery in employment. Employment started falling in the mid of 2011 amid a reduction of job finding rates and a new process of job shedding concerning most of the EU, with job separations surging in a few countries, notably Greece and Portugal. The current weakening of the labour market is mostly the result of worsening economic activity linked to the aggravation of the sovereign crisis. About 40% of the growth in unemployment for the overall EU since 2008 is due to the massive increase in Spanish unemployment. After four years with the beginning of the financial crisis, finding job rates remain low in most member counties. Youth unemployment rates increased dramatically in Greece, Portugal, Spain. Since the start of the crisis, most EU countries have taken an active reform stance, and managed in some cases to pass ambitious reform plans. Some countries have high unemployment and large external imbalances for this reason they try to improve their responsibility and labour market adjustment by reforming their job protection. Unemployment is becoming a very serious issue in a number of EU countries, with increasingly visible economic, social and political implications. The rate of the unemployment should be decreased that’s why the countries should create new conditions for the build up trust and to keep it labour demand on the stable basis. In several countries, these reforms usually politically were recently carried out within the framework of structural adjustment programmes. For examples Greece, Spain, Italy, and Portugal, took measures. Also in this countries by taking new tax reforms, could create the conditions for better mobilising labour supply and demand. In the countries should concerned by high youth unemployment policies and also focus on easing the school-work transition, including by an effective use of apprenticeship systems.On the basis of increasing poverty and social exclusion, increasing unemployment and reduced income lies.After the increase of the sovereign debt crisis in the euro area, investments and consumption decisions have influenced. Unemployment in the EU as a whole grew, in contrast with other world regions.The unemployment rate in the euro area is currently at the highest level and unemployment performance at unprecedented levels. The number of unemployed in April 2012 was 17.4 million for the euro area, almost 25 million in the EU. The number of job losses since 2008 amounts to about 5 million for the EU; 3 million for the euro area.

In 2011, the euro area was the world region with the highest unemployment rate. Since second half of 2011, unemployment developments in industrialised countries have started to diverge, mainly as a consequence of a more sustained recovery in the US and Canada compared with the EU and Japan.In Japan, GDP growth turned out negative following weak external demand and the supply chain disruptions related with the earthquake and flooding in Thailand. Conversely, in many other industrialised countries, most notably Canada, Australia, and New Zealand, unemployment remains above the pre-crisis average in spite of the recovery.In the United States, relatively stable real wages were associated with sluggish job creation amid strong recovery of productivity growth. In Japan, the limited adjustment in head-count employment during the 2011 contraction coincided with a substantial increase in real wages, mostly attributable to price deflation

The European employment strategy seeks to create more and better jobs throughout the EU. It takes its inspiration from the Europe 2020 growth strategy. In response to the high level of unemployment in Europe, the European Commission launched in April 2012 a set of measures to boost jobs, the so called “Employment package”.

1. 1. Support job creation
2. 2. Restore the dynamics of labour markets
3. 3. Strengthen the governance of employment policies

Flexicurity is an integrated strategy for enhancing, at the same time, flexibility and security in the labour market.

Working with national governments, social partners and academics the EU has found acommon flexicurity principles and has explored how countries can implement them through four components:Flexible and reliable contractual arrangements,Comprehensive lifelong learning strategies,Effective active labour market policies,Modern social security systems

Integrated flexicurity policies play a key role in modernising labour markets and contributing to the achievement of the 75% employment rate target set by the Europe 2020 Strategy.

Sources:

http://www.oecd.org/

 http://data.worldbank.org/data-catalog/world-development-indicators

http://www.worldbank.org/

http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/

http://www.wikipedia.org/

 

Written by Latife Cansu Bayar, Eyüp Dönderalp, Lucija Kacin and Lenka Filova

 

»They want us to pay all their bills and we’re getting tired of it now« (The story of IRELAND)

The story of Ireland is like a fairy tale: from rags to riches and back to rags again. Twenty-five years ago Ireland was mired in a deep peat bog of slow growth, high emigration,  shocking poverty. Then came the miracle of the »Celtic Tiger«, which briefly made Ireland the second-richest country in the European Union. A 2005 study by The Economist found Ireland to have the best quality of life in the world. The 1995 to 2007 period of very high economic growth, with a record of posting the highest growth rates in Europe. But The Financial Crisis of 2008 affected the Irish economy severely, compounding domestic economic problems related to the collapse of the Irish property bubble. (Leaders, 2011)

The main industries in Ireland are: pharmaceuticals, chemicals, computer hardware and software, food products, beverages and brewing, medical devices.

Ireland is one of the most open economics in the world. In 2008, for example exports plus imports were equivalent to 150 per cent of GDP. In 2012 exports have been growing at only 2% a year since last spring, the slowest since they started to recover in early 2010. (Nuno Fontes, 2013)

Employment

The standardised unemployment rate in April 2013 was 14.0 percent. The latest CSO labour force data indicate that there are 304,500 workers unemployed (205,700   males   and 98,800 females). Of these more than half are long-term unemployed (out of work for more than 1 year).

Last year, emigration was at its highest since the 19th century, with about 76,400 people leaving Ireland in one 12-month period, according to the Central Statistics Office. Many workers have been jobless for more than one year, and 30 percent of people aged 24 and under are unemployed. Unemployment has increased in all regions, being highest in the Southeast and lowest in Dublin and the Mid-East. (Nuno Fontes, 2013)

Salaries

According to the Central Statistics Office, average weekly earnings in Ireland are 689 EUR, and average hourly earnings are 21.83 EUR. These figures are lower than last year. Average weekly earnings have fallen across many sectors, with the largest declines in construction and arts and entertainment. The largest increases were registered in professional, scientific and technical occupations; salaries are increasing at a higher rate in IT than in other sectors because of the demand for experienced candidates.

Occupations in Demand

Ireland boasts a highly skilled and educated workforce and does not experience any particular difficulties finding talent apart from engineers and IT professionals. Ireland reported the least amount of difficulty among countries surveyed. Irish employers do report difficulty filling the following positions, however: IT staff, nurses, sales managers, insurance staff, engineers, sales representatives, chefs and cooks, drivers…

In february 2013 in Ireland tens of thousands of people marched in six cities around Ireland protested against austerity measures, days after the government struck a vital deal on its bank debt. For protesters struggling with cuts in living standards, mortgage arrears or unemployment, the deal is scant consolation. In the crowd, a large number of public sector workers, frustrated by cuts in their basic pay and additional workplace demands, expressed anger at government plans to make further cuts in the sector. One of the teacher, who has seen his wages cut by 700 euros per month said, or about 20 percent, in the last five years said: »They want us to pay all their bills and we’re getting tired of it now.« (Stephen Mangan, 2013)

Stephen Mangan. (2013). Irish marchers protest nationwide against austerity. Available: http://www.reuters.com/article/2013/02/09/us-ireland-debt-idUSBRE9180BH20130209. Last accessed 25th April 2013.

Nuno Fontes. (2013). Ireland Unemployment Rate Stable at 14% in April. Available: http://www.tradingeconomics.com/ireland/unemployment-rate. Last accessed 25th April 2013.

Leaders. (2011). Irish mist. Available: http://www.economist.com/node/18178137?zid=295&ah=0bca374e65f2354d553956ea65f756e0. Last accessed 25th April 2013.

 

Written by: Lenka Filova, Lucija Kacin, Cansu Bayar, Eyyüp Dönderalp