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Unemployment in Europe – social and economy impact, dangers, solutions

According to recent statistics, the unemployment rate in Europe at the end of 2012 was situated at 11.8 %. This means that throughout Europe there were actually somewhere around 18 million people who were not employed. Socially and economically, these figures can be translated in a high financial pressure being exercised on European Governments.

 

On one hand, they are faced with less revenue obtained from taxes; on the other hand the need for social financial aids rises. A new matter arose in the last few years in regards to the European labor market – older aged labor force participation has failed dramatically, therefore we can expect even more pressure to be placed on the European Social Security Systems. To be more specific, the number of retired people continues an incredible growth, while the number of workers who actually contribute financially to the pension funds appears to be smaller every year.

 

Cross border mobility in Europe and what appealing labor markets still are in Europe’s main regions (Western, CEE, SEE)

 

The most developed European economies are faced with declining birth rates. In contrast, emerging markets situated outside Europe (such as the BRIC countries – Brazil, Russia, India and China) are currently producing an excess of young talent. They are actually producing twice the number of graduates than all the other developed markets in one place. The general view of HR annalists is that this excess of labor force will partly be deployed to European countries in the next few years.  In a recent study conducted by Interdean, the “Global Mobility Survey”, 1119 global companies classified the UK as being the most popular European destination for foreign assignments. The responding companies have also highlighted the main international mobility growth/decline factors (see attached documents). The most common components of a cross border relocation package are: immigration visas and work permits, temporary housing, medical insurance, the moving of personal belongings, etc.

 

Regarding international mobility, in order for a labor market to be attractive for new cross border assignments, it has to present some location benefits. Most companies looking to expand will take into consideration factors such as tax legislation, immigration procedure that they will need to comply with, infrastructure, etc.. One direct impact of membership of the EU is that the substantial legal and administrative requirements for foreign workers do not apply to transfers between EU countries. This represents a significant difference between the European and other international free-trade areas and has led to a strong growth of expatriation between European countries and significant changes in the forms of expatriation.

 

Find the complete issue of the English report in the attached document.

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INTERDEAN ROMANIA SRL