V4 countries address employment issues

Labour ministers of the Visegrád 4 (V4) countries addressed shared employment issues in Bratislava at an international conference organised by the Slovak Ministry of Labour held on 22 March 2011. László Andor, the European Commissioner for Employment, Social Affairs and Inclusion attended the conference. He pointed out that the economic crisis was testing the European social model while also acknowledging that the EU labour market needs reforming.

International conference on employment

The economic crisis has again increased unemployment in Slovakia. After unemployment fell below 10% in 2008, it gradually increased to 14.5% in 2010. The Slovak Government has made reducing unemployment a top priority. The Ministry of Labour, Social Affairs and Family of the Slovak Republic (MPSVR SR) organised the international ministerial conference entitled ‘The impact of the global economic crisis on employment and labour market recovery’, which was held in Bratislava on 22 March 2011. The conference was attended by representatives of the Labour Ministries of the Czech Republic, Hungary, Poland and Slovakia, collectively known as the Visegrád 4 (V4) states. The importance of this event was underlined by the attendance of the EU Commissioner for Employment, Social Affairs and Inclusion, László Andor.

Jozef Mihál, the Slovakian Minister of Labour, Social Affairs and Family, opened the conference and gave the opening speech in which he explained the current situation and the measures proposed by the Slovak Government. The Hungarian Minister of State for Employment Policy, Sándor Czomba, the Deputy Minister of Labour and Social Affairs for Employment Policy and Labour Market of the Czech Republic, Karel Machotka, and the Deputy State Secretary of the Polish Ministry of Labour and Social Policy, Radosław Mleczko, clarified the situation in each of their respective countries. Their presentations were followed by papers given by experts from the V4 countries on the subjects of employment, education and research. In addition to the opening and closing plenary sessions, a panel discussion was held which included Commissioner Andor, representatives of the Ministries of Labour of the V4 countries as well as experts in the field. The panel discussed the i_mpact of the global economic crisis on employment,_ and the challenges which face labour market recovery and how to address them.

Shared problems and tasks

The presentations by the representatives of the V4 countries showed that, even though there are signs of economic recovery, the situation regarding employment is not satisfactory. Even though the economic situation in each of these countries is different, they share common problems with regard to employment.

• Unemployment is high among young people.

• A mismatch between the needs of the labour market and the qualifications of graduates exists.

• Long-term unemployment is high.

• Regional variations can be observed.

Examples showed that each of these countries is preparing measures to solve the problems which affect their own labour market. Jozef Mihál noted that, despite the economic recovery, unemployment is not falling in Slovakia. He added that the Slovak government is preparing several changes to improve the situation. The proposed changes include more flexible labour legislation, reducing the tax burden on employers and improving business conditions overall, for example, through improved law enforcement and more consistent public procurement.

László Andor pointed out that the economic crisis has also tested the European social model and that labour market reforms are also needed in other EU Member States. Such reforms should be based on the Europe 2020 strategy and can use the tools offered by the EU policies. Cooperation of EU Member States in this sphere is important and those Member States that are already implementing reforms will make things easier in employment later on.

Key outcomes

The panel discussion showed that the economic crisis has taught employers how to function at more or less the same level, but with fewer staff. Lifelong learning must play a key role in helping the workforce to adjusting to fast-moving changes in the labour market. The V4 countries should increase their competitiveness by means of a highly educated and trained workforce rather than by lowering labour costs. While efforts should be made to increase productivity, providing employment support for disadvantaged groups should not be forgotten. The discussions on the upcoming changes in the Labour Code in Slovakia highlighted the significantly differing views of the employers, who demand radical changes in the Labour Code, and the trade unions, who defend it in its present form. Changes in employment legislation aimed at implementing more flexible forms of employment are also being prepared in the remaining V4 countries and their representatives also welcomed the opportunity to share experiences in this sphere.

Ludovít Cziria, Institute for Labour and Family Research