Presumptions for the Development of Labour Market Differences in a Homogeneous

Abstract

The main differences of labour markets in the Baltic States and the main factors influencing them in the context of Euro integration are analysed in this paper. The differences in different regions appear at the beginning of the European Union, but the last period of its development gave the most challenge for the new members as well as the whole European Union. The factors that influenced the changes in the labour markets can be grouped into two periods: influence of transformation processes till the integration into the EU and development of the integration processes of later years. Transformation and integration processes began simultaneously and they have been carried on for different purposes through different political conditions and means. The results and development of these processes determined initial Euro integration conditions and different development of labour markets in the EU countries. The Baltic States have a few similar features: they all have the similar territorial area, all three states are post soviet countries and their economic development was determined by the similar factors, but they have differences in the changes of their labour market structures. The differences of economic development between new members and the other EU countries are obvious. Gross Domestic Product in some regions differs more than eight times and unemployment rates – even seven times. Though the Baltic States are often presented as one homogeneous group, the transformation and integration processes determined the different effects in their labour markets. To reduce these social and economic differences in these regions and to stimulate the equal EU development – it is one of the political purposes in the EU countries, so the presumptions influencing the differences of labour markets in homogeneous group of the countries are analysed in this paper.