The mobility of the workforce is one of the fundamental starting points of the structural unemployment, which can signalize a lot of unfilled job positions in the time of many unemployed workers. High unemployment rate, though, can be a negative factor of the workforce mobility, as people are more afraid and uncertain about finding and keeping the current job position.

Demographic predictions tell us that from the year 2020, there will a decrease of nearly 10 million workers in Europe and even now 86% of companies claim that they have problems filling open job positions. The employment rate nowadays depends on the disposal of the workforce, which allows a successful long-term employment. The companies thus expect more and more from their employees, and prefer people who are more fluent and willing to learn, than very specifically trained personnel.

The companies adapt to the current labour market situation

Demographic predictions tell us that from the year 2020, there will a decrease of nearly 10 million workers in Europe and even now 86% of companies claim that they have problems filling open job positions. The employment rate nowadays depends on the disposal of the workforce, which allows a successful long-term employment. The companies thus expect more and more from their employees, and prefer people who are more fluent and willing to learn, than very specifically trained personnel.

Source: eurostat.sk

The increase in the number of tertiary educated people often leads to a situation where many job positions are filled with overqualified personnel. The unfavourable phenomenon stemming from the increasing tertiary education is the quality of the given education. Universities produce too many absolvents with general education, not suitable for open job positions that require more expertized education. The responsibility for providing an adequate education thus transfers towards the employers.

“It is crucial to set up the educational system in such a way to create a continual and long-term supply of qualified employees. If the government’s interest won’t turn into real actions, the competitiveness of Slovak republic will start to decrease dangerously.”

– President of the Automotive Industry Union

The presumption is that because of the lack of the workforce on the market the companies will adapt to the labour market situation. They will be more willing to accommodate specific requirements to get the right employee and to lower their own requirements. Another presumption that stems from this is that the selection process will be easier, so that the companies will be less strict in what they are expecting from their future employee, will test them less vigorously and also there will be a smaller number of selection rounds. It won’t be applied across the board, but according to the survey almost half of the companies already started to evaluate their requirements regarding education or experience for the said work position, and will offer a training instead.

The mobility of the work force will affect the economic-political aspects

There is an expectation that the lack of qualified workforce will also affect the economic growth and prosperity. Maintaining a qualified workforce is becoming a key strategic goal in order to secure future economic growth. To be able to keep the current European standard of living, it is mandatory to increase the employment rate of every age group, work productivity and also consider the increase of the work time. Another essential requirement for the future economic growth is to further increase living standards, create new sustainable positions, which should lead to reducing obstacles of rising employment rates. The goal is to increase the representation of marginalized groups on the labour market.

There is an expectation that the lack of qualified workforce will also affect the economic growth and prosperity. Maintaining a qualified workforce is becoming a key strategic goal in order to secure future economic growth. To be able to keep the current European standard of living, it is mandatory to increase the employment rate of every age group, work productivity and also consider the increase of the work time. Another essential requirement for the future economic growth is to further increase living standards, create new sustainable positions, which should lead to reducing obstacles of rising employment rates. The goal is to increase the representation of marginalized groups on the labour market.”

– Marketing manager of the company Manpower

Low mobility of the local workforce combined with the lack of the qualified workforce forces companies into looking for people in other countries. The arrival of foreign students is one of the first ways how to bring new workforce within regulated mobility. This is the reason why the percentage of foreign employees rises so dramatically, while the number of local long-term unemployed people rises too. Significantly positive economic situation thus lowers the motivation of the people to travel abroad and vice versa.

The widening economic instability is partially created by the demotivational setup of the welfare program, ethnical specifics of some regions of Slovakia, or deformed values of the population. Very significant factor on the labour market is the lack of the economic conditions needed for continual increase of the new, productive work places. The goal of the National Employment strategy of the Slovak republic for the year 2030 is to secure healthy life, increase the quality of life for everybody regardless of age, assert the economic growth and productive employment and also secure long-term consumption and production.

Digital economy in the times of globalization is unavoidable

Organisation for Economic Co-operation and Development (OECD) predicts that up to 30% of the current work places can be fully automatized in 20 years. The industry digitalization has already started in the neighbouring Czech Republic. It will be very important to support research and development of rapidly developing technologies like Artificial Intelligence, High-performance computers (HPC), or Blockchain (dynamically coded database). We can see two concerns arising from the aforementioned surveys: the fear of losing a work position and that the Artificial Intelligence will totally “take over” us. Researches further claim that in the next 10 years the Artificial Intelligence will significantly change over 70% of the job positions in Slovakia.

“According to the OECD, more than 65% of today’s schoolchildren will work in job positions that are not even existing now, or will be vastly different from their current version. We are one of the countries that will be influenced by the new technologies the most. “

– CEO of Microsoft Slovakia, Rudolf Urbánek

The big assumption is that after 2020 the labour market will be more emphasized on innovation and the product personalization. There will be a drift from a company loyalty of internal employees towards a model of external specialist teams with experience needed to start their own projects. More and more emphasis will be put towards short-term projects instead of staying in a long-term employment at one employee. The people will be led by the desire to do their work flawlessly and will be able to achieve their goal through self-organisation. There is also a prediction that the management model will change from up to down style into bottom up model. Managers will not be permanent members of the project, but will only be present at specific project stages. The success of the leaders will be evaluated in consideration of their capabilities to create relations, to communicate and to effectively solve problems in their teams. The key to success in the future will be competitiveness.

Personal agencies play a crucial role on the labour market. Job candidates (also from other countries) have an opportunity to sign a mediation contract with them for a work position that is specialized towards a specific industry or profession. The mobility of the workforce will be supported through their means in order to solve the young unemployment problem and help the employer to find abilities they seek, but cannot find them on their local labour market.