Authors: Ivana Faltová Leitmanová and Klára Kadeřábková
Paper title: Eployment in the context of globalization trends and processes in selected countries within OECD
Summary Employment, as a connection to factor of production, is in the sense of quantitative dimension primarily influenced by population progress and population age structure. It is secondly impacted by labour market legislature, let us say customs, eventually stereotypes, which might significantly influence the use of factors of labour production. Qualitative dimension use of direct labour reflects then the level of human capital. The following essay deals with the analysis of some aspects of mentioned connection and interdependency in selected countries within OECD in the period right before and after the oil shock times.
Introduction The growth, as a result of engagement and method of use of growth factor, at least in the context of the economic growth theory, might differ owing to activity of other factors a processes in particular countries. Therefore it is interesting to study globalization factors, let us say globalization trends, tendencies and processes are analogical even in case of the particular factors of growth, in introduced context in case of labour production factor.
Material and Methodology The principle criterion for the mentioned research was the study of data, especially from the database of OECD, ILO and EU, which contains statistic data of different sections of economic life in a country, thus from the area of employment and labour market as well [ www.oecd.com, www.ilo.org, europa.eu.int ]. Most of data form time lines, although they are not the same lenght, or more precisely not long enough and sometimes incomplete. Moreover, in the world context there are data that are not methodically identical. These are the fundamental limits, that influence the analysis, process, and mainly the use and predicability of analysis, based on this source of data. The data analysis concerning partial issues of labour market is beeing conducted, with regard to above matter, from the time point of view since the beginning of 70´s (more precisely for the period, which will be the data available for) aproximately in ten – year, more precisely five –year interspace. In terms of space determination, initiative global research starting point will regard particular world regions, the other selected OECD countries, in case of some features, let us say connections, six EU member countries will be subjected to further exploration (one founding member – Germany, one subsequent member – Austria and four latest members – Slovakia, Poland, Hungary and Czech Republic) along with USA and Japan. Selection of the first two members was influenced by their proximity to the Czech Republic and by the free movement of people as well, more precisely by the policy of free labour force movement applied against the new member states where transitional period is applied. The USA and Japan were chosen as reprezentatives of countries with diverse customs, more precisely the previous development and applied economic policy.
Outcome and discussion In the elapsed period, situation has changed in developed economies, in the meaning of decreasing unemployment, in economies in transition (which accomplished the transition in about the same time) in the meaning of mild employment rate decline and growth of unemployment rate and also countries of South Asia in the meaning of the growth of unemployment rate as well. The chart No. 1 shows the worldwide definition of labour markets on the base of employment rate and unemployment rate in particular world regions in 2003.
Chart No. 1 Labour market, 2003
Labour Market, 2003
employment rate, in %
Latin America and the Caribbean Developed Economies Transition Economies
55 50 45 40 2 4 6
Central East and Northern Africa
8 10 unemployment rate, in %
The mentioned trend is the consequence of economic and demographic development and also of social and political circumstances in particular countries. It is the result of migration as well. Let´s now analyze trends in migration in OECD countries. This analyse concerns the last 30 years period . Looking at the migration balance, we find falling migration flows within the OECD countries. As in 1970 the net migration per 1000 inhabitants took the value between +9,3 (in Germany) and –16,5 (in Portugal), which meant high rate of variability in the examined file, in 1980 the the migration rate values varied between +6,9 (in Australia) and –7,4 ( in New Zeland). In 1990 the interval widened again. The migration rate in Germany took values of +16,3. Portugal migration rate was at the opposite extreme as it took values of –3,9. The
lowest variability was measured in 2000 when the net migration varied between 8,9 (in Spain) and –2,9 ( in New Zeland). This results can be partly explained by a general relation which says there can be a substitution between migration and external economic relations especially international trade relations which are intensivelly developed in the period of globlization. In fact trade barriers and free movement of labour force and capital barriers are significantly restricted. Average numbers of worked hours also partly explain the mentioned trend. For 18 OECD countries (which we have the complete data for) we can find one of the following trends in No. of worked hours: 1) dynamical growth during the whole period – Australia, Canada, Island 2) slow growth with stagnation periods – Ireland, Italy, New Zeland, Norway, Sweden, USA 3) growth alternated by slow down – Danmark, Finland, France, Germany, Japan, Netherlands, Great Britain 4) slow down alternated by slow growth – Belgium and Spain In the examined time period we can find (dispite a possible metodical inaccuracy related to changing number of countries, which we have the data for) the trend of decreasing number of worked hours. From 1980 also the trend of decreasing differences in average worked hours between particular OECD countries (variation coefficient decreased from 14% in 1980 to 12,3% in 2004)
Chart 2: Migration and worked hours, 2000
average hours worked, per person
Migration and worked hours, 2000
2000 Poland 1900 1800 1700 1600 1500 1400 -1,0 0,0 1,0
net migration, per 1000 popul.
Slovak Rep. Japan United States Austria
Germany 2,0 3,0 4,0 5,0
On the example of 8 countries we will focus on the relationship between net migration and average number of worked hours (chart 2). We found following trends in migration: in 1970 four countries (Czech Republic, Hungary, Poland, Japan) were showing negative balance, in 1980 the balance was negative only in Hungary and Poland and in 1990 and 2000 just in Poland. Negative migration balance during the whole examined period was found only in Poland. The analyse of 2000 data show a certain similarity between economies in transition in high number of worked hours. High number of worked hours exists in economies in transition and is connected with low migration. On the other hand, lower number of worked hours in USA, Austria or Germany is connected with higher migration. Hungary is an exemption because of data showing higher number of worked hours and high level of migration. The relevance of absolute worked hours number is limited. Analysing the relationship between worked hours and GDP per worked hour can lead to better results.
Chart 3: Worked hours and HDP per worked hour, 2000-2004 (in %)
Growth of Hour Worked and Growth of GDP per Hour Worked, 2000-2004 (annual average, in % ) 6 Germany
Growth of GDP per Hour Worked, in %
5 4 United States 3 2
Czech Rep. Poland
Japan Slovak Rep.
-1 -0,8 -0,6 -0,4 -0,2 Growth of Total Hours Worked, in %
Chart 3 shows the relationship between the number of worked hours and growth of GDP per worked hour in the period 2000-2004. It is evident that there is no clear dependence between the 8 examined countries. There are countries with high growth of GDP per worked hour (Czech Republic, Poland, Hungary and Germany). All these countries show a differentiated development in number of worked hours. Countries with lower growth of GDP
per worked hour showed also a differentiated development in number of worked hours. The number of worked hours has actually grown in Austria. The monitoring of selected employment aspects, and or effects and factors, which might influence them leads to conclusion that trends in the examined time period are partly different and partly consistent. The reason for such result consists partly in different political economic experience during history and partly in existing globalisation processes
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