Editor's note

About half the jobs created in Europe during last decade are in the category of “time-limited”, which means that employment is either flexible or dealt with a certain project or “problem-solution”. Besides, it is becoming vital for new job-seekers to have either a very special (needed at that period) or general higher-grade education certificate.

But even the latter is not a remedy for finding a good-paid job, which has been a certain thing for employees some decades ago... For example in the US and other western states so-called “freelance-employment” has been a common place for decades as a so-called “new normal”, commented Danish daily editorial in “Politiken” (20.02.2017). 

Threats are growing…

It is worrying that a long-standing combination is fading away which united fast-employment and own house’s ownership with necessary high education in various western-European states, e.g. in Scandinavian, and the Baltics. With this “combination” the social stability is disappearing slowly with damaging consequences for already weak trade unions and shrinking middle-class. Thus the whole welfare “construction” in a western society is becoming quite shaky…

Then, imagine the coming “threats” of robotics and artificial intelligence, which will most probably reduce the existing workforce even further on, which in turn would only multiply social uncertainties.

Our magazine wrote about the consequences of the 4^th industrial revolution, see e.g. “Davos proclaims the “fourth industrial revolution”. 27.01.2016. In: http://www.baltic-course.com/eng/editors_note/?doc=16003&ins_print. 

Worries for politicians and businesses

For politicians the greatest concern is changing electorates: already presently the constituencies are composed –mainly- by those in the 50-after age group: exactly those under growing pressure from an unstable labour market’s conditions.

The effect of such uncertainty for politicians and governing elites is already seen in the outcome of the completely “unpredicted” for some the American presidential elections. President Trump addressed exactly that unstable middle class suffering from disappeared US industries during last three decades – and was supported by them (hence came “America –first” slogan)…

However, these results have been “unpredictable” only for those who didn’t follow the changes in the modern labour markets. It has been evident for many that reducing middle class as a result of globalization is a ticking “political bomb”!    

Probably for the Nordic states the problem is even more acute and socially dangerous: the welfare model is being built on the middle class “accord” with politicians to sustain a high tax policy’s directions. The changes in the middle class structures, which are inevitable, might have reduced the “accord’s” value and lead to social unrest with growing nationalism.

Ways out are numerous: for example, in “creating” new and courageous politicians with a good vision of far-reaching consequences of presently made decisions: first of all, in education and training to provide a future work force for yet unknown to most politicians sectors of economic development that would provide growth in 20-30 or 50 years to come.

Because the main problem modern politicians are going to face is a growing new generation, which is “forming-up” in line with the wide-spread digital revolution.

Besides, a new political course will need a strong public support; thus, it has to be very clearly and simply explained to the wide-public.

And so are the challenges for business community: labor market is presently split into two main parts – private and public “business”. Taking aside the procurement issues, the division is constantly in favour of a “public” part, in line with the EU “social market economy” model. It is more public in the Nordic states as well.  

However, unknown –generally- trends in the structure of future national “structural policies” (i.e. those industrial-services’ sectors that would provide growth in future) do not entail security in the future employee-employer relationship, which is fundamental for social stability. Besides, future labour force (initially, students in colleges and universities) should know where and how they are going to be employed; but so far youth unemployment is the greatest headache for politicians in the EU and the Baltic States.