Setting the stage: general changes on the European labour market

This chapter deals with some main changes in the European labour market which not only frames the specific position of countries and regions, but also determines their future. The spatial-institutional perspective stresses that the regional differentiation of the labour market is the result of the relationship between general labour market processes and the regional arena. While countries in Northwestern Europe already saw a change towards the post-industrial society, some Southern and Eastern European countries are dominated by manufacturing. The change towards the information economy and intangibles means a tremendous change in the structure of labour demand. Changes in the labour supply are next to natural changes and migration, also caused by changing participation rates. The major trends in the age-specific participation change are a stabilisation of the participation of the younger group, an increase of the middle age group and decreasing levels for the elderly.