Editor's note
International Internet Magazine. Baltic States news & analytics
Tuesday, 19.03.2024, 13:10
Labour market changes: headache for politicians and business
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 4th
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.