Discussion Papers 2008.
Socio-Economic Analysis of the Carpathian Area 70-75. p.
8 Employment, unemployment
The economic activization of the population has an extreme importance both from
social and economic aspects as for the majority of people this is the only way of
earning regular income, and the ratio of active wage earners and dependants
influencing the spending of incomes on household and social levels is also in
strong correlation with this process.
The ratio of economically active population (the total number of employed and
active jobseekers) within the total number of population (activity rate) is less than
the European average. After its decline during the past years it slightly increased
in year 2003 in the Carpathian region but still remained on low level, at about
55%. The regional differences between regional activity rates are presented by the
table below. It should be noted that of the EU 25 countries the presence of
Hungary’s active wage earners is the lowest on the labour market. It should also
be noted that a great number of jobs were ceased as a consequence structural
crisis. Several members of the older generation having lost their job chose an
early retirement or live as disability pensioners reducing in this way the statistics
of unemployment. This is the main background of the low activity rate, as it
cannot be explained merely by the number of children (see: low birth rate) (Table
17).
The economic restructuring in the region is well reflected by the labour market
indicators as well. The employment ratio in the research area is lower but the
unemployment ratio is higher than the European average. The number of
employed people has significantly decreased since the 1990s.
There are large differences between the economic activity indicators of the
territorial units of the Carpathian region. Regional indicators are reflecting
national trends as well. In this field Hungary has the lowest economic activity
with only 50.2% average and 45.6% (North-Hungary) and 54.5% (Central
Hungary) values. The economic activity rates in the Slovak and Czech regions are
approximately 60%. The ratio of economically active population increased in the
Slovak regions which can be explained by the entry of fresh school graduates in
high number into the labour market. This reduced the number of economically
inactive persons (but increased the ratio of old-age pensioners).
In postsocialist countries the social system of the communist era regarded full
employment as a priority objective. Several state provisions granted full
employment for the economically active generations. This, on the one hand,
provided a kind of social security for active wage earners but on the other hand
lowered the economic efficiency of employment. The collapse of the socialist
planned economy system generated massive unemployment in these countries,
therefore nearly all member regions of this macro-region are facing this kind of
historical heritage. Thus, now we are experiencing the outcomes of not only a
Employment, Unemployment.
In: Socio-Economic Analysis of the Carpathian Area.
Pécs: Centre for Regional Studies, 2008. 70-75. p. Discussion Papers, Special
EMPLOYMENT, UNEMPLOYMENT
71
Table 17
Activity rates in the regions of our research area (2005)
Regions
Economic activity rate (15 years and over)
Total Males
Females
(%)
Austria 59.4
67.5
51.8
Burgenland 56.9
65.8
48.4
Lower-Austria 58.9
66.8
51.6
Vienna 58.1
65.8
51.3
Čzech Republic
59.4
68.7
50.7
Jihovýchod 58.2
68.0
49.1
Strední Morava
57.9
67.6
48.8
Moravskoslezsko
58.5
66.1
51.3
Hungary 50.2
58.3
43.1
Central-Hungary 54.5
62.6
47.8
Central-Transdanubia 53.3 62.3 45.2
West-Transdanubia 53.7
62.0
46.2
North-Hungary
45.0
52.6
38.4
Northern Great Plain
45.6
53.8
38.2
Southern Great Plain
47.3
55.5
40.2
Polska 54.9
62.8
47.7
Małopolskie 55.9
63.7
48.8
Śląskie 52.2
59.4
45.9
Podkarpackie 54.3
60.5
48.5
Świętokrzyskie 54.3
61.9
47.1
Romania 53.9
61.5
46.9
Nord-Vest 51.9
58.1
46.2
Centru
50.4
59.1
42.2
Nord-Est 58.6
62.7
54.6
Sud-Est
51.6
61.3
42.3
Sud – Muntenia
54.9
64.1
46.4
Bucureşti-Ilfov
53.3
61.6
46.2
Sud-Vest Oltenia
57.1
63.9
50.7
Vest
51.4
60.4
43.2
Slovakia 59.5
68.4
51.3
Bratislavský kraj
63.9
71.3
57.4
Západné Slovensko
59.3
68.2
51.2
Stredné Slovensko
59.2
68.2
50.9
Východné Slovensko
58.1
67.6
49.3
Serbja
55,5 64,4 47,0
Ukraine 62.2
68.2
56.8
Zakarpattia Oblast*
64.5
70.3
59.0
Lviv Oblast*
61.2
65.7
56.9
Ivano-Frankivsk Oblast*
56.5
59.6
53.6
Chernivtsi Oblast*
60.3
65.6
55.5
*2006.
Source: Eurostat, national statistical yearbooks.
Employment, Unemployment.
In: Socio-Economic Analysis of the Carpathian Area.
Pécs: Centre for Regional Studies, 2008. 70-75. p. Discussion Papers, Special
72
SOCIO-ECONOMIC ANALYSIS OF THE CARPATHIAN AREA
short-term economic breakdown or a transitional drawback of market positions,
but the problem is much bigger: this is a failure of an economic and social policy
run for several decades. Its negative impacts have emerged in a massive scale and
simultaneously after the 1990s.
The primary reasons of the economic breakdown of post-socialist countries are
stemming from the absence of earlier market mechanisms. The first phenomena
of unemployment are correlating with the changes in the economic regulation
systems: the ratio of unemployment was continuously increasing for ten years in
the regions of our research area. Apart from a temporary period and certain
special territorial units it started to decrease only after the millennium but the rate
of decrease showed significant regional differences.
In these post-socialist countries the shutdown of big industrial plants and the
collapse of agricultural cooperatives have resulted in a massive dismissal of
employment surplus. On the demand side the following factors were increasing
the ratio of unemployment:
Tensions in industrial structure.
The loss of earlier COMECON markets.
The shrinking size of internal markets.
The transformation of firms.
The new proprietary structure and privatization of firms.
On the supply side the professional and language skills of employees were not
meeting the requirements of the European economy. This created a mass of
unskilled workers having no hope for finding a permanent job on the long run.
The dropdown of employment was uneven in the different economic sectors
and regions. The highest drop rate of jobs can be observed in the primary sectors
of economy (Figure 3).
In the countries of our research the decline of employment rate restructured the
ratio of the three big economic sectors as well. The migration rates of labour force
between the different economic sectors during the past 10–15 years are very close
to the indices of the West European countries with advanced market economy.
The ratio of people employed in the tertiary sector is approximately 60% in sev-
eral regions. More than two-thirds of the total labour force are employed in the
private sector (Figure 4).
Differences in employment are very high within the macro-region of our re-
search. While in core areas unemployment rate is by far below the average in
several NUTS3 areas unemployment rate is more than the double of the average
but in some depressing regions it is over 20%. The most severely hit by unem-
ployment areas are the south-eastern part of Slovakia, the Polish counties and
some counties in Romania.
Employment, Unemployment.
In: Socio-Economic Analysis of the Carpathian Area.
Pécs: Centre for Regional Studies, 2008. 70-75. p. Discussion Papers, Special
EMPLOYMENT, UNEMPLOYMENT
73
Figure 3
Employed persons (1000) by economic sectors in NUTS2 regions (2005)
Bratislavský kraj
Chernivtsi
Észak-Magyarország
Nyugat-Dunántúl
Podlaskie
Közép-Dunántúl
Dél-Alföld
Swietokrzyskie
Észak-Alföld
Ivano-Frankivsk
Stredné Slovensko
Moravskoslezsko
Strední Morava
Zakarpattia
Agriculture, forestry and fishing
Východné Slovensko
Industry
Wien
Niederösterreich
Services
Podkarpackie
Jihovýchod
Vest
Západné Slovensko
East Serbia
Lubelskie
Bucuresti - Ilfov
Centru
Sud-Vest Oltenia
Lviv
Nord-Vest
Sud-Est
Közép-Magyarország
Malopolskie
Sud - Muntenia
Slaskie
Nord-Est
0
200
400
600
800
1000
1200
1400
1600
1800
Note: The 10 Serbian kraj altogether are called East Serbia.
Source: Eurostat, national statistical yearbooks.
Employment, Unemployment.
In: Socio-Economic Analysis of the Carpathian Area.
Pécs: Centre for Regional Studies, 2008. 70-75. p. Discussion Papers, Special
74
SOCIO-ECONOMIC ANALYSIS OF THE CARPATHIAN AREA
Figure 4
The ratio of employed persons in the Carpathian region, % (2004)
Source: Eurostat, national statistical yearbooks.
Roma population is in a very disadvantaged position from the aspect of em-
ployment chances by sex and etnicity. The ratio of Roma population is extremely
high in lagging regions where poverty and poor physical access are further hin-
drances to their social integration process. Their return to the labour market needs
carefully elaborated and customized measures and in the majority of cases they
can work at state subsidized workplaces only (Figure 5).
The macro-region’s economic restructuring and the massive employment
change of population all contributed to the increase of migration. This can very
well be verified by the outmigration of skilled labour force from east to west
(brain drain). The macro-region’s economic restructuring increased the mobility
of labour force, especially of skilled labour force. This territorial shift of labour
force is coinciding with the territorial shift of capital resources and assets (Lelkes,
2004).
Employment, Unemployment.
In: Socio-Economic Analysis of the Carpathian Area.
Pécs: Centre for Regional Studies, 2008. 70-75. p. Discussion Papers, Special
EMPLOYMENT, UNEMPLOYMENT
75
Figure 5
Unemployment rates by sex (2005)
Vrancea
Satu Mare
Lower-Austria
Győr-Moson-Sopron
Harghita
Bihor
Budapest
Bacau
Men
Women
Salaj
Timis
Suceava
Bratislavský
Pest
Cluj
Arges
Arad
Burgenland
Alba
Bistrita-Nasaud
Buzau
Bucuresti
Ilfov
Sibiu
Zakarpattia
Hunedoara
Komárom-Esztergom
Csongrád
Jász-Nagykun-Szolnok
Trencianský
Covasna
Heves
Lviv Oblast
Jihomoravský
Békés
Hajdú-Bihar
Mehedinti
Ivano-Frankivsk
Wien
Chernivtsi
Maramures
Caras-Severin
Nógrád
Mures
Zlínský
Vâlcea
Szabolcs-Szatmár-B
Olomoucký
Dâmbovita
Trnavský
Neamt
Brasov
Borsod-Abaúj-Z
Moravskoslezsko
Miasto Kraków
Gorj
Prahova
Krakowsko-tarnowski
Zilinský
Bielsko-bialski
Rzeszowskotarnobrze
Nowosądecki
Podkarpackie
Krośnieńsko-przemyski
Rybnicko-jastrzębski
Nitrianský
Świętokrzyskie
Centralny śląski
Częstochowski
Presovský
Banskobystrický
Kosický
30
20
10
0
10
20
30
Source: Eurostat, national statistical yearbooks.