The Influence of the Business Cycles on EU labor market indicators

Apply

The Influence of the Business Cycles on EU labor market indicators

Journal Title: Ekonomika ir Vadyba: Aktualijos ir Perspektyvos - Year 2013, Vol 32, Issue 4

Abstract

In global economy labor market becomes extremely sensitive to the changes of economic environment. Studies assessing the dependence between the economic growth and labor market indicators have found out, that the economic slowdown affects the various labor market indicators. Recent empirical studies have shown that the negative impact of the GDP decline on the unemployment, employment rates and other labor market indicators can be more significant, in the cases of emerging economies. Although, scientific studies have shown, that the economic downturn makes negative influence to labor indicators, and in the economic growth cycle the indicators are improving, but in today's economy, there are cases when the labor market indices do not coincide with classical economic theory trends. Firstly, economically strong and less developed countries are characterized by different response of labor market indicators to economic shocks. Secondly, some labor indicators changes discrepancies according to the GDP changes may start at labor market during economic shocks. Discrepancies usually start because of labor indicators lag or, conversely, are caused by the future expectancies of economic subjects. The influence of the business cycles on EU labor market indicators research results are presented in the article. EU employment, unemployment, labor activity rates, labor costs, job vacancies of the period 2007–2012 are analyzed. The research of the GDP influence on labor market indicators is made according three different periods of the GDP, in the purpose to find out, how fast changes of the GDP affects different labor market indicators. Research is made in two countries’ groups: the first group consists of the old EU countries and the second group consists of new EU countries. During the research significant relationship between analyzed indicators in the group of old EU countries mostly is determined in the cases of Belgium, Denmark, Germany, Ireland, Spain, Italy, Luxembourg, United, Kingdom. Statistically significant relationship between analyzed indicators mostly determined in all new EU countries. Analysis of the GDP influence on labor market indicators has shown, that the indicators of new EU countries react to GDP changes more sensitive, comparing to the old EU countries. The research also has shown, that different labor market indicators have tendency of changes, according to the different period of GDP changes. Tendency of employment rate changes according to the same period GDP changes verified in cases of sixteen countries. Analysis of previous, the same ant future period GDP change influence on unemployment rate have showed the least significant relationship cases comparing to all indicators. Small number of the cases determined hasn’t let to mark GDP period influencing unemployment change the most. Research results let determine, that labor activity rate is influenced by the same period GDP changes and, according to the different countries cases, by future expectations of the economic subjects. Labor costs indicator is sensitive to the same period economical environment changes. This tendency is proved by the cases of Belgium, Spain, Italy, Luxembourg, Portugal, Bulgaria, Check Republic, Estonia, Latvia, Hungary, Malta and Slovakia. Job vacancies have direct relationship with change of previous or future GDP period, according to the different countries cases. Key words: business cycle, unemployment rate, employment rate, labor force activity rate, labor costs, job vacancies, new EU countries, old EU countries.

Authors and Affiliations

Rasa Reizgevičienė , Daiva Beržinskienė

Keywords

ekonominis ciklas nedarbo lygis užimtumo lygis darbo jėgos aktyvumo lygis darbo sąnaudos naujos darbo vietos naujosios ES šalys senosios ES šalys

Влияние процесса глобализации на формирование городского пространства российских региональных центров Уральского экономического района

В статье на примере столиц субъектов Российской Федерации, входящих в Уральский экономический район, исследуется проблема влияния интеграции экономики города на формирование городского пространства. С помощью последних и...

EP ID EP131391
DOI -
Views 53
Downloads 0