The labor market and unemployment. The economy of labor is trying to explain the functioning of the market and the dynamics of labor. Macroeconomics of labor markets cover employment and unemployment as levels (Stock variables) and the employment rate as a dynamic parameter. Microeconomics is predominantly an neoclassical basis and explains the balance of the labor market, flexibility, elasticities and salaries. Labor markets, capital, services and products are the basic markets in which companies and individuals operate. The labor market works through the interaction of workers and employers. In addition to certain specificities and institutions, which do not meet on other markets, the fundamental characteristics and mechanisms of the functioning of the labor market are close to other markets. For these reasons, the labor market analysis relies on the same general principles for the allocation of resources. The economy of labor specifically analyzes the supply of labor services (workers), the demand for labor services (employers) and related rental forms, employment and income. Economists believe that labor efficiency is influenced by education, knowledge and social system. Unemployment in economic terms arises when there are adequately qualified workers who are ready to work according to prevailing rents, but can not find employment. In the structure of today’s labor markets, mainly three types of unemployment is dominated: friction, structural and cyclical. Full employment, or the reduction of unemployment is among the dominant goals of many governments. In the period before World War II, Macedonia fitted into the typical characteristics of an undeveloped, agrarian country with over 75% of the population engaged in agricultural activities. The model of forced industrialization, accompanied by high capital investments and extensive resources transfers, led to rapid deagram and abandonment of agriculture and rural settlements. The industry development and fast urbanization withdraw large contingents population in the secondary sector: industrial employment and construction. Intensive structural shifts simultaneously reflect on the structure of employment. The share of agricultural in the total population is reduced by 71%, 1948, to 22%, 1981. The share of industrial workers in the same period increases from 22%, 1952, to 38.5%, 1981. The structure of employment was dominated by low productive industrial and agricultural work. The extensive model of economic growth has led to a tendency decline in efficiency in the use of resources and to reduce the employment capacity. The transition from the extensive in an intensive model since the mid-sixties showed the undercover unemployment (Disguosid unemplance) and led to rising, open unemployment. In the sixties and seventies, among other things, as a consequence of the limited capacity of the economy to generate jobs, a significant outflow of the workforce abroad came to the limited capacity of the workforce. Despite the significant increase in employment in the domestic economy, the number of people looking for work tendency grew, from 6 000, 1952, at 128 000, 1984. After independence, the long transition and the absence of significant economic growth sharpened the problem of unemployment to the level of central economic and social problem. Contrary to significant reform attempts, the macroeconomic indicators of the Macedonian economy are unfavorable. According to a number of sources, despite certain controversies related to statistical data, Macedonia belongs to countries with the highest unemployment rates in Europe. Persistently high unemployment, more than low income, is the key factor of poverty. Conveniently, in varying degrees, all known types of unemployment are present. Unemployment is predominantly structural character, marked at a high long-term unemployment rate and with a low educational level of the unemployed. In addition to structural disparities, labor supply is fundamentally greater than demand. There is a wide discrepancy between supply and demand, the labor market is segmented and is in deep distortion. In standard analytical models, unlike the Macedonian case, unemployment is a delayed indicator of the economic cycle at the decline in the real GDP growth. The low economic growth rate for the past two decades is the main reason for high unemployment. The sharp contractions of economic activity during the transition period raised the level of informal employment. The slow restructuring of the economy gives an image of a stagnant economy. The central problem, which is maintained, is the lack of labor demand in the formal sector. The overall economic situation has serious implications in the implementation of further reforms in the economy from the post-convival period and specific in the labor market. Number of employees and unemployed persons (in thousand) Year employees Unemployed 1996 542 257 1997 506 287 1998 531 284 1999 538 261 2000 543 261 2001 583 263 2002 549 263 2003 523 Workforce Survey (2004), Labor Force Survez (LFS). Reducing unemployment, which is among the most serious economic and social problems, requires important institutional change, raising the overall factor productivity, the efficiency and competitiveness of the Macedonian economy, dynamic economic growth, adequate social policies and more adequate distribution of income and resources. Lit.: State Statistical Office, “Yearbook”, appropriate years; National Strategy for Economic Development of the Republic of Macedonia – Development and Modernization, MANU, Skopje 1997; News Bank: MACEDONIA, CONTRISTS ECOOOMIC MEMORANDUM, Taccling Unemplance, Report But. 26681-MK, 2003. Mr. Five.
Original article in Macedonian language Cyrillic alphabet
Кириличен напис ПАЗАРОТ НА ТРУДОТ И НЕВРАБОТЕНОСТА