U NEMPLOYMENT, LABOUR MARKET, FREE MOVEMENT OF WORKERS Michal, Romana, Simona and Thomas representing the Group B4

S TRUCTURE 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

U NEMPLOYMENT - DEFINITION Unemployment Unemployment is the state in which a person is without work, available to work, and is currently seeking work. Unemployment Unemployment is share of adults in specific categories who do not participate in the labour market

W HO IS UNEMPLOYED ? able-bodied person (whithout serious handicaps) willing to work actively seeking work unable to find a job

T YPES AND C AUSES OF U NEMPLOYMENT Causes: on demand-side/ on supply-side objective and subjective Types: Cyclical Structural Frictional Seasonal Hidden Long term

E FFECTS 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

E CONOMIC AND S OCIAL C OSTS 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

T HE V ARIETY

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

U NEMPLOYMENT 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

U NEMPLOYMENT POLICY IN EU COMMON 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

L ABOUR 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)

F REE 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

E NLARGEMENT IN 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) ‏ changes in 2006

T HE S WEDISH E NLARGEMENT D EBATE pro-arguments: welfare abuse labour market would be negatively affected mass migration counterarguments: originally pledged to open low labour mobility dynamic migrants

T HE CASE OF I RELAND economy in a strong position 47,500 work permits in 2003 protecting the welfare system Habitual Residence Condition (HRC) ‏

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