The influence of the EU crises on the European labor market

Student: Viktor Gavrilov

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The influence of the EU crises on the European labor market

Introduction

As a definition said, the labor is the aggregate of all human physical and mental effort used in creation of goods and services. In simply words, the labor is a primary factor of production, and the size of a nation's labor force is determined by the size of its adult residents, and the extent to which the adults are either working or are prepared to offer their labor for wages. In world of globalization, the economy today really care about people labor, as human activity that provides the goods or services in an economy, and also the services performed by workers for wages as distinguished from those rendered by entrepreneurs for profits. Many, years ago, the initial evaluation of labor should include a review of the patient's prenatal care, including confirmation of the estimated time of delivery. Determined on history taking should elicit the following information, such as frequency and time of onset of contractions, fetal movements and presence or absence of vaginal bleeding. Labor standards include minimum requirements prescribed by existing laws, rules and regulations and other issuances relating to wages, living allowances and other employee financial and welfare benefits, occupational health and safety and other principles designed to improve conditions of work. While observing no substantial evidence of a return to the labour shedding policies of the 1980s, people in Europe, identify a retrenchment of labour market policy in some states. In European Union labor have optimal change, for making people more and more productivity, in effective and efficiency way. Therefore, the general rules of the law about labor, such as the rules on concluding contracts, the consequences of a breach of duty (compensation of damages, cancellation of the contract) and the implications of the exclusion of the primary obligation to render services (e.g. loss of consideration, compensation of damages), which are applicable to the employment contract unless the labor law includes special rules.

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The influence of the EU crises on the European labor market

The influence of the EU crises on the European labor market

The economic crisis that beset Europe in 2007 had a significant impact on employment, which means labor change in all countries. Since 2008, unemployment has increased throughout Europe, but modification mechanisms affecting the labour market have varied from one country to another. These adjustment systems, which originate from business strategy and which are partly maintained by public policy measures, reflect the persistence of three varieties of capitalism in Europe. The increase in the euro-area unemployment in 2012 was linked both to job division rates remaining high and job finding rates staying at the lowest level since the start of the crisis. The share of long-term unemployed has also increased at an accelerated rate, which does not bode well for job finding rates looking ahead. Job finding rates fell especially in Cyprus, Greece, Portugal, Spain, Italy, the Netherlands, Slovenia, with some signs of stabilization becoming perceptible and visible at the end of 2012 in some countries, notably Spain. The remarkable increase in the job disconnection rate in the euro area recorded in 2011 was followed by a relatively minor reduction in 2012. In 2012, increases in the job separation rate were recorded especially in Cyprus, France, Spain, Sweden, while a considerable reduction in job separation rates was observed in the Ireland and also Greece. Labor dynamics unceasing to differ substantially across countries. While employment growth was robust in the Baltics, Germany, Hungary, Malta, Romania, employment losses were recorded especially in Bulgaria, Croatia, Cyprus, Greece, the Netherlands, Spain, and Portugal. Differences in unemployment active reflected to a large extent GDP growth differences, but a relevant role was played by different responses of employment to economic activity. In particular, in the countries deeply affected by debt crises and deleveraging, the worsening of the labour market was musculary than it was expected on the basis of GDP growth, which suggests that employers' expectation on economic prospects could have played a role. 1

The Political System of the European Union, Hix, S., Macmillan, 1999

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The influence of the EU crises on the European labor market

Overall, the patterns of labor market dynamics across the Union of European continent, further contributed to increasing the already high degree of dispersion of unemployment rates, with the relevant exception of the Baltic countries, where the high unemployment levels are falling at a rapid pace. Poverty indicators come into view on the rise in a growing number of countries since 2009, reversing previous trends. In 2011, severe material deficiency rates above 15% were recorded in Bulgaria, Romania, Hungary and Greece, while at-risk-of-poverty rates above 20% are experiential in Bulgaria, Romania, Greece, and Spain. These developments are the outcome of a complex set of factors, notably linked to growth, income distribution, access to labour income and public transfers and services. Among those issues, however, long unemployment spells, and the associated loss of labour income and exhaustion of obtainable and exiting wealth and access to benefits, appear to play a most important role, as shown in analysis contained in the report. This underscores the necessity of attempting unemployment also as a priority objective to address poverty.

Overall, in the first phase of the crisis, all countries expanded their labour market policy efforts. As crisis deepened, though, there was a clear bifurcation between those states that stepped up structural reforms intended to reduce labour market segmentation and those that turned to a more destructive agenda of retrenchment.After few years of deteriorating labor market outcomes, the first signs of stabilization in EU unemployment are becoming manifest against the background environment of GDP growth turning positive, improving sentiment, and recent reforms. Major labor market disparities persist across the EU and the euro area.

Today, the EU has provided guidance within existing processes of economic surveillance, with the objective of urging action where necessary and ensuring a mutually consistent response at the euro-area and EU level. In this 2013, new EU initiatives have focused on the emergency and crisis of youth unemployment, as a new social dimensions, with the aim of providing additional funds and strengthening policy frameworks targeted to the youth.

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The influence of the EU crises on the European labor market

Conclusion
Before the global financial crisis

monetary policy seemed to be the only game in the Union. Central bank independence and transparency appeared to contribute to creating an environment of stable inflation and adequate economic growth.

Now

slower economic growth is spreading to some emerging markets

economies the pressure on their currencies has begun to evaporate. Instead, beginning earlier this year, markets of the labor began to trouble over. It remains to be seen whether central banks can weather that storm since this will test their mandate of keeping inflation low and stable while conducting policy in an autonomous approach. As has happened in the past, fiscal dominance may well place global economy in Europe, into the position of reluctantly following the demands of the fiscal authorities. In other words, this is about what consider the question of whether the economic crisis has also brought a labour market policy reform crisis in its wake.

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The influence of the EU crises on the European labor market

Referencess:
1. The Political System of the European Union, Hix, S., Macmillan, 1999. 2. Understanding the European Union : A Concise Introduction, Second Edition (Paperback), John McCormick. 3. , ., - , 2002.

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