A review of the tendencies and challenges in the European Union labour market

Abstract

Purpose – The paper presents the phenomenon of the past decade (2008-2018) that shaped the labour market all over Europe and also points out the differences lying beneath with the changes generated in the post-crisis period. In the context of this study this literature review is intended to provide a theoretical background for the development of a piece of research revealing the new labour market phenomena. Design/methodology/approach – The study first examines theoretical frameworks, solutions, and their practical operation through international experience. Findings – The economic crisis, initially of financial nature, had its percussions felt on the state budget and went on to real economy. Its consequences were also felt on the labour market. According to global experience, modern economies and societies are facing several challenges including unemployment, labour shortage and underemployment at the same time, in spite of the fact that the level of employment has significantly been rising in the past few years. Research limitations/implications – We applied an abductive approach. The reconstruction of past events is based on abduction, as we can deduce the events from their consequences and impacts on the present. Practical implications – Both unemployment, labor shortages and underemployment result in unfavorable economic conditions in a country. It is of utmost importance to effectively address these phenomena in order to reduce and control their negative effects. Originality/Value – Our study deals with the impact of employment on the labour market, the three key phenomena of the labor market: labour shortages, chnages in underemployment and international migration (labour migration) in European Union countries. Analysis is needed because conscious economic policy begins timely preparations for these changes. Keywords: job vacancy, labour market, labour shortage, migration, underemployment Research type (choose one): research paper JEL classification: J24, J62