Abstract
This paper focuses on evaluating strategic management of the labor market through legislated active labor market measures introduced in the Slovak Republic to support youth employment. Based on the presented statistical data and managerial and legal analysis of the labor market in the Slovak Republic, with particular emphasis on the economic status of young people, two key parts of the adopted strategic document should provide better economic security for young adults. From the point of view of employers the initiatives are an attractive means for incorporating young adults into the economy, especially because this allows for increased active management of personnel costs that are directly related to compensatory incentives from the side of state agencies for employment of young people. This strategic management creates possibilities for employers to gain access to lower labor costs and to realize significant cost savings. Supporting data are presented graphically and at the same time the cost savings for employers are calculated. Overall, these two analyses demonstrate the practical effect of the new strategic measures on corporate management of personnel costs
Highlights
A high level of youth unemployment brings multidimensional costs that can be significantly higher than even potentially-expensive public policy interventions
The primary data presented in this paper were collected as part of the scientific project VEGA No 1/0805/13 “Optimization of the layout of the model of work relations in the labor market in the Slovak Republic” financed by the Ministry of Education of the SR and the secondary data come from a review of various literature sources
Many current mid-term strategic solutions to youth unemployment focus on creating new jobs of a temporary character and do not establish a presumption of long-term sustainability
Summary
A high level of youth unemployment brings multidimensional costs that can be significantly higher than even potentially-expensive public policy interventions. Practical experience from individual corporations in the manufacturing sector in the Slovak Republic highlights significant issues in the long-term planning of production processes (Raisová-Ďurčová, 2013; Olšovská-Švec, 2014; Novotný, 2014; Barinková, 2014) This has been caused primarily by the lack of a qualified workforce within the desired age range since potential employees with technical education younger than age 30 are in short supply. There is a relatively large group of unemployed youth in the labor market, who due to various objective conditions (e.g. lack of education) or subjective conditions (generation Y culture) do not want to work and participate in economic activity (Lisý et al, 2011; Čapošová, 2013; Mura, 2014; NovotnýPolčíková, 2010) This unsustainable state has been explored by Grmanová-Havierniková (2008) and Vojtovič (2012). Based on the initial number of applications for these programs, the interest of the employers appears to be quite high
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