u nemployment, labour market, free movement of workers michal, romana, simona and thomas...
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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
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)