engleski

A New Labour Market Approach: Keeping Jobs and Enhancing Labour Market Flexibility

Finding the right balance between flexibility and security in working arrangements, is today one of the major employment policy priorities in majority of European countries. The paper analysis flexicurity concept which provides important answers to the question of how to meet modern labor market challenges and at the same time improves security. The model combines high mobility between jobs with a comprehensive social safety net for the unemployed and an active labor market policy. Over the past decade there is a clear tendency towards reducing the strictness of employment protection (EPL) - mostly focused on regulations governing individual and collective dismissals. Namely, the level of labor market flexibility is also reflected by the share of temporary and part-time employment in total employment. The most important thing in removing rigid labor market rules involves introducing flexicurity: moving from protecting jobs to protecting workers. Actual situation in EU labor market indicates on the existence of considerable differences in labor market flexibility and security across EU Member States. An adequate equilibrium between the need of protecting employees and efficiently allocating labor is a key priority for policy makers. Therefore, the focus in this research is on the following flexicurity variables: EPL index and unemployment benefits (UBs).

flexicurity; EPL; labor market; unemployment benefits

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