labor force

In this article, we deal with the question to what extent the Slovak population is compatible with the work market and also what this compatibility will look like in the future. We explore this issue in global context, and thus try to predict the future development. We identify the determinants with the greatest influence on the compatibility of the Slovak population with the work market.

The full text of the article is available in Slovak.

Summary

We can today note indications that the Slovak population is not fully compatible with the work market. This conclusion is hinted on mainly by the following facts:

  1. Despite a relatively low cost of labor in comparison with other countries of the Eurozone, the unemployment rate in Slovakia is quite high.
  2. From the statistical data of the National Bank of Slovakia (NBS, 2012) it follows that foreign investments are usually not aimed at cities and regions where there is officially the highest offer of work (the highest rate of registered unemployment), but mostly at regions with the lowest registered unemployment rate.
  3. Long-term unemployment is associated mainly with little or no qualification – characteristics markedly associated with the Roma people. The average employment rate in this population group is less than 30 %.

Considering the likely development in the future according to the mega-trends we identified, we can assume that the extent of incompatibility of the Slovak population with the work market will only increase. The following mega-trends are clearly in play:

  1. The demand for highly qualified work is rising.
  2. Skilled specialists from Slovakia often prefer to be active on work markets with higher earnings, i. e. abroad, where they often also end migrating.
  3. The demand for unqualified and low-qualified labor is decreasing.
  4. The fertility rate is higher in people with a lower participation on the work market and a poorer education, and we can expect that the next generation will not be significantly better of.

The main factor of decreased chances of succeeding on the work market, whether in the present or in the future, is inappropriate education – whether too low, or in an unsuitable specialization. The most high-risk group is however that of people with low qualification, and the determining force of this factor will probably only increase in the future.

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