Labor Demand Research Articles

Current labor market in the EU and Ukraine: trends, problems, forecasting and solutions

The labor market is one of the economy changing components, it is quite similar to the market for goods and services, but instead of the demand and supply of goods, there is a demand and supply of labor, knowledge, skills and abilities that are supplied by the employee. The EU, in turn, is known for its openness to immigrants and the employment of third-country nationals. This creates new opportunities and challenges for workers and employers. Labor market research helps to understand the impact of immigration on labor markets. Covid-19 has actually become that springboard on the way to changes in the economies and labor markets of countries around the world. Transformations and changes that were just emerging until 2020 (this may safely include digitalization, automation, the spread of remote employment, etc.) will further intensify under the influence of the Covid-19 pandemic and the Russian-Ukrainian war and lead to a significant redistribution of workers between sectors. In general, labor market research in the EU and Ukraine helps countries to understand and respond to various challenges and opportunities related to employment, labor migration, economic development and social policy. The purpose of our work is to identify trends and problems that exist at the present stage of development of the labor market, as well as to forecast the further development of the labor market at the level of the European Union and Ukraine

The effects of long–distance power transmission on employment growth: Empirical evidence from ultra–high voltage projects of China

Long–distance power transmission is a crucial solution for alleviating the uneven distribution of energy and promoting economic development. This work is the first to provide an estimate of the benefits to employment of long–distance power transmission. Using unique data from the China National Tax Survey Database for the years 2007–2016, we utilized ultra–high voltage (UHV) project of China as an exogenous shock to investigate how long–distance power transmission affects firms' labor demand by employing the difference–in–differences method. We found that the UHV system significantly increased firms' labor demand. A mechanism analysis suggested that the UHV system did this mainly by facilitating firm entry and expanding firm production scale. A heterogeneity analysis indicated that, compared with provinces with low grid reliability and grid capacity, firms in provinces with high grid reliability and grid capacity exhibited a stronger response to the UHV system in terms of labor demand. Our research findings provide a new solution for countries to balance resource distribution, energy transition, and employment growth.

Աշխատուժի պահանջարկի կանխատեսման միջազգային փորձը / International experience in forecasting labor demand

In many countries, there is a persistent gap between the skills needed in the labor market and the skills offered by the labor force. Forecasting the demand for labor with different levels of education, qualifications, and skills is a strategic and systematic process carried out by labor market actors in order to avoid possible gaps between the demand and supply of skilled labor. It allows young students, policymakers, employers, and workers to make better choices in education and training, and through institutional mechanisms and information resources leads to more efficient use of skills and human capital. Developed countries have accumulated extensive experience in planning and forecasting the possibilities of using labor with different qualifications, based on such characteristics as the level of education, qualifications, age and gender composition of the population, occupational structure, economic activity, etc. In this context, the article discusses the best practices and tools for forecasting labor demand.

Analysis of the factors determining educational mismatches: evidence from the Catalonian employment insertion surveys

PurposeThe existence of mismatches between training and jobs is relatively common and is accentuated in times of crisis where unemployment is growing. The negative effects that this phenomenon can generate on both workers and the economy makes its study relevant. The objective of this research is to analyse whether graduates of the Catalan university system have jobs according to their educational level.Design/methodology/approachThis paper sees how graduates’ own and acquired characteristics influence the probability of a mismatch from the analysis of the microdata of different waves of the employment insertion survey conducted by the Agència per a la Qualitat del Sistema Universitari de Catalunya (AQU).FindingsThe main conclusions focus on confirming that more humanities-oriented degrees tend to have a higher level of mismatch while technology or medicine approach a perfect fit. Therefore, bringing the education and business systems together is important to reduce this gap. Meanwhile, in terms of activities, services such as hospitality and retail have historically been sectors with a poor fit, and what has happened with Catalan graduates has not been an exception.Originality/valueThe main contribution of the research has been to highlight where there is a greater mismatch from the point of view of training, the type of work and its evolution over time, detecting the need to adjust labour supply and demand.

The challenge of customer-oriented and emotional labor demand for hospitality internship students

The challenge of customer-oriented and emotional labor demand for hospitality internship students

FAKTOR-FAKTOR YANG MEMPENGARUHI TINGKAT PARTISIPASI ANGKATAN KERJA AKTIF DI INDONESIA

This study explores the factors influencing Indonesian community participation in the labor force, employing a descriptive qualitative method with data collection through literature review. Although Indonesia possesses significant human resource potential that could support economic growth and compete globally, employment issues remain a substantial challenge. Despite the increasing number of people entering the working age, the availability of job opportunities has not kept pace, leading to an imbalance between labor supply and demand. This research identifies three key factors affecting active labor force participation: unemployment, education, and minimum wage. The study is relevant to the Labor Demand Theory, which explains how imbalances in the labor market affect workforce decisions. By understanding these factors, it is hoped that the government can formulate effective policies to create new job opportunities and support economic growth and community well-being more comprehensively. This research aims to provide useful insights for policy-making that could enhance labor force participation and address employment issues in Indonesia.

European Union gender equality and work–life balance policies: managing tensions between the demands of production and reproduction

European Union (EU) gender equality policies increasingly acknowledge the existence of tensions between the demands of productive and reproductive labour, with the former defined as waged work and the latter as the (unpaid) activities reproducing the labour force and provisioning for caring needs. As women increasingly enter the labour market, the EU addresses the growing tensions through new gender equality policy initiatives, prompting the question of whether these recognise the value of reproductive labour to the economy. This article analyses the discourses of three EU institutions (the European Commission, Council of the EU and European Parliament) and finds that EU policy as a whole continues to prioritise the interests of the productive economy. This results in a loss of the emancipatory potential of its gender equality goals, in particular, for women from working-class, minority ethnic or migration backgrounds.

The response of labour demand to different COVID-19 containment measures: evidence from online job postings in Austria

This paper analyses changes in the speed of labour demand for new hires in response to the lockdowns that were repeatedly put in place to contain the spread of the COVID-19 pandemic. It tests whether the uncertainty-reducing effect of similar lockdowns occurring in quick succession increased the responsiveness of the labour market, thereby allowing for more rapid adjustment, both at the beginning and at the end of subsequent lockdowns. It uses high-frequency online job-posting data and applies an event study approach to the beginning of three national lockdowns and the subsequent reopening in Austria between 2020 and 2022. In view of the importance of progress in vaccination for labour market recovery, it also looks at vaccine roll-out as an additional COVID-19 containment measure, with 2021 as the main roll-out period. The results indicate very different responses to the three lockdowns, with a decline in job-posting activity of between 47 and 50% during the first lockdown and of between 29 and 31% during the second; but an increase of 23% to 28% during the last lockdown. Moreover, responses to the first lockdown were sluggish, with a slow decline at the beginning and a very slow recovery after it was lifted; but over subsequent lockdowns the responses were more rapid and more symmetrical. Responses to the various events differed by occupation and industry: the strongest responses were to be observed in the highly skilled and more-teleworkable occupations of technicians, and managers and professionals, who were badly affected during the first lockdown; the leisure and hospitality industry, which was the hardest hit on account of the mandatory closures and the widespread travel restrictions and bans, and which recovered only very slowly; and the IT, internet and telecommunications industry, where posting activity developed in a direction opposite to that seen in the other industries. Finally, there is little robust evidence of a differentiated effect of vaccinations during lockdowns, suggesting that vaccination roll-out did not have an additional demand-generating effect, over and above the lockdowns.

The Economic Impact of Covid-19 pandemic on Labor Market and Stock Market

The pandemic has caused severe unrest and uncertainty in the labor market. Share prices have fallen sharply. However, the reasons behind it and the related policy effects still lack a unified explanation and summary. Therefore, the topic of this paper is the impact of the epidemic on the labor force and the stock market. The research method of this paper is as follows: firstly, the relevant data such as unemployment rate, hiring ratio and purchasing manager index are collected, and then the data are analyzed. The study found that the main reasons for the decline in labor demand may include business shutdowns, more cautious business investment and the psychological impact on workers. Fears of a potential recession, supply chain disruptions and uncertainty over the duration and severity of the outbreak have driven the rapid fall in share prices. The relevant policy recommendations further encourage local governments to use the surplus funds from unemployment insurance and other sources to support enterprises in maintaining employment stability. This paper will encourage the implementation of policies that delay or partially refund social security contributions. And strengthen the strategy of partially refunding unemployment insurance premiums, promoting local employment opportunities, and providing subsidies to ensure the overall stability of the employment situation. These policies are constantly evaluated and adjusted in light of changing economic conditions and employment trends to help maintain employment levels and support businesses during difficult times.

The brazilian house: from Oca to My House, My Life

The present article addresses the development of housing typology in Brazil, from indigenous dwellings to "Minha Casa, Minha Vida" homes. The objective is to succinctly recount the trajectory of Brazilian housing typology, a rich and multifaceted narrative reflecting the country's cultural diversity and socio-economic challenges over centuries. The development of social housing projects aims to provide decent housing for low-income families, generating demand for labor and reducing unemployment. The proposed methodology is based on a historical and comparative approach, using bibliographic and documentary sources to examine transformations in architecture and Brazil's socio-economic context over the years. Furthermore, the article specifically studies the "Minha Casa, Minha Vida" program, providing a qualitative analysis of its effectiveness in promoting access to decent housing and its social, economic, and environmental implications.

Government expenditure and the housing puzzle: Unpacking mechanisms

Shocks in housing demand can trigger economic downturns, prompting governments to boost public consumption to mitigate its impact. The literature has found conflicting effects of government spending on residential investment and housing prices. We hypothesize that differences in the construction sector’s responses may be due to factors unaccounted for in the estimations, such as labor supply response to wage changes, labor reallocation between sectors, and the amount of household debt. Using a dynamic general equilibrium model, we demonstrate that government consumption boosts tradable goods production, resulting in increased labor demand and wages. However, this diverts workers away from construction, potentially deepening the wound in this sector. Specific labor market attributes and economic indebtedness can catalyze worker displacement from the construction sector, thus adversely affecting residential investment and overall credit. As a result, borrowers face considerable welfare losses. Redirecting government spending toward housing sustains residential activity while exacerbating the overall welfare decline. Our analysis provides plausible explanations for the disparate empirical evidence on the impact of government spending on the construction sector.

Disasters and technological upgrading measured by changes in demand for ICT labour: estimating the impacts with text

AbstractExtensive literature has studied the economic impact of disasters. However, specific impacts on labour markets have received less attention. Using a massive earthquake (> 8.0 Mw) that struck Chile in 2010 and proprietary data from a Chilean online job board (4136 job postings published between 2008 and 2012), we examine changes in demand for Information and Communications Technologies, ICT, related labour as a proxy for technological upgrading, by assuming that ICT and related technologies drive much of the technical change in production. We implement a structural topic model to discover and estimate the difference in the prevalence of ICT and Construction labour, among others. Our results show that ICT labour does not change. In contrast, Construction labour significantly differed after the disaster, suggesting that reconstruction activities led to employment differences. Our results suggest that there was no substantive technological replacement following the earthquake.

Navigating Home in Migration: Yi Migrant Workers and Their Homemaking Experiences in Shenzhen Factories

This article investigates the experiences of Yi migrant workers in Shenzhen factories through a conceptual framework that focuses on three dimensions of home in migration. Examining industrial dormitories, the foreman system, and governmental attention, it uncovers the intricate ways migrants negotiate their sense of belonging. The spatial dimension is evident in dormitories offering a semblance of home while reflecting broader societal and economic influences. The relational aspect emerges through the evolution of the foreman system, highlighting the interplay between traditional social bonds and modern labour demands. The sensorial dimension becomes apparent in the limited recognition migrants receive despite their contributions. This study underscores the multifaceted nature of migrant experiences as well as the need for comprehensive understandings of home that encompass spatial, relational, and sensorial elements within the dynamic context of migration.

Trade credit, labor employment, and demand for skills: An empirical investigation of Vietnamese small and medium enterprises

AbstractThis paper examines the effect of firms' trade credit use on their labor demand and the composition of this labor demand in terms of skilled and unskilled workers. Our analysis is conducted on a rich data set of private manufacturing small and medium enterprises in Vietnam over the period of 2009–2013. We find strong and robust evidence that these firms recruit more workers when they receive trade credit offered from their suppliers. In addition, larger trade credit is associated with firms' higher propensity to hire skilled labor. We also find that the effect of trade credit on firms' labor market decision works through the investment channels, especially through those investment projects leading to the enhancement of firms' innovative capability. These findings highlight the role of trade credit regulations for job creation and economic development.

Can the IRA and CHIPS Act Reduce Labor Earnings Inequality? Lessons from the US Shale Boom

We study how the US shale boom decreased labor earnings inequality by increasing demand for low-skill labor in small labor markets. The similarities in the concentrated geographic distribution of investments and the labor needed to build capacity between the US shale boom and the manufacturing construction influx that has followed the passage of the IRA and CHIPS and Science Acts raise the possibility that these bills could also impact labor earnings inequality in a similar way.

Inflation and Economic Growth Tradeoff, and Its Impact on Indonesia Poverty

There was tradeoff between inflation and economic growth in Indonesian economy over the last three decades, from 1990 to 2021. When economic growth tended to increase, inflation would also increase. The increasing scale of business sectors due to the increasing of economic growth shifted price and wage setting in the same direction, then increasing labor demand, and decreasing poverty. This study used a VAR model to estimate tradeoff between inflation and economic growth, and OLS model to estimate the relationship between economic growth and the poverty, and also between inflation and poverty. A VAR model explained that there was a positive bi-direction causality between inflation and economic growth, however, there was uncertainty whether economic growth caused inflation, or whether inflation caused economic growth. Although economic growth had a positive effect on reducing poverty, but due to the tradeoff between inflation and economic growth, then economic policies had to be designed to fully controlling inflation during the persistence of economic growth to prevent an increasing of poverty. Expected inflation and long run inflation target should always be a major concern when setting monetary policy to avoid higher economic fluctuation that could stimulate increasing of inflation and poverty.

Has ‘the great moving right show’ stopped?

How will the new Labour government compare to its New Labour predecessors? This article revisits ‘New Labour’s Double Shuffle’, the critique of the New Labour government that Stuart Hall wrote in 2003, to see how this might provide guidance in understanding the conjuncture of the Labour government elected in July 2024. Hall???s article had followed on from his pre-election analysis of the Thatcher project in ‘The Great Moving Right Show’, in 1978. His argument was that the dominant agenda of the New Labour governments was one of subordination to pressures emanating from capital, with the demands of Labour’s supporters being subordinated to this. It is proposed that the relations between the dominant and subordinate elements in these structures should be seen in dialectical terms, as an ongoing struggle between conflicting social forces. The question is raised of whether the current Labour government is essentially a continuation of the New Labour project, or whether it might be something different. The argument is made that to achieve a favourable outcome in a new struggle for hegemony it is essential that Labour remain in office for several parliamentary terms, and that there be a critical engagement with what its government does.

A new bi-level TOPSIS based neutrosophic programming technique for land allocation to medium farm holders

Agriculture impacts a country's social and economic growth. Crop allocation, crop combinations, and crop production processes are all necessary to achieve optimal results during various growing seasons. To maximize farm earnings, proper farm planning and resource allocations are necessary. In agriculture, land allocation problems involve several uncertainties and unpredictable variables, includes water supply, labour demands, fertility use, and food requirements. The objective of this study is to propose novel bi-level programming approaches to overcome such issues and obtain optimal land allocation for medium-sized farmers. The current study examines a bi-level, TOPSIS-based neutrosophic programming approaches in two cases, including non-interactive and interactive approaches with linear, exponential, and hyperbolic membership functions to maximize net profit and minimize the expenditure. The proposed methods are compared to other approaches, such as the Torabi & Hassini approach, the Fuzzy Optimization Technique (FOT), and the Intuitionistic Fuzzy Optimization Technique (IFOT) and are found to be more effective than the existing ones.

Impact of Declining Fertility Rates on the Demand for Family Care Labor in Latin America

Impact of Declining Fertility Rates on the Demand for Family Care Labor in Latin America

Labour market tightness in the post-COVID-19 era

Since 2020, the labour market in advanced economies has shown resilience against successive supply-side shocks. High job vacancy rates and historically low unemployment, despite a recent weakening of economic growth, imply a lower sensitivity of the labour market to changes in the business cycle, underscoring the need to re-evaluate labour market tightness, as it could increase the risks of wage-price spirals and more restrictive monetary policy. Ιn the present paper, we analyse the degree of labour market tightness and its implications for wages, inflation and monetary policy in two large open economies, the US and the euro area, and in a small open economy, Greece, that has undergone substantial labour market reforms, to explore whether post-pandemic labour market developments have common or idiosyncratic features. We find that policy support measures to address the pandemic and the energy crisis have decoupled unemployment from cyclical fluctuations, with the gap narrowing in 2023. Labour market tightness in the post-pandemic era has mainly been driven by a robust increase in labour demand, while labour supply has reverted to or exceeded pre-pandemic levels in the US, the euro area and Greece. Real compensation per employee lags labour productivity levels in all three economies, whereas it remains below its pre-pandemic level in the euro area and Greece. This suggests that the economies in question could tolerate some further catch-up in real wages in the short term without experiencing inflation.