Title: LABOR MARKET AND WAGE DEVELOPMENTS IN THE EU AND BULGARIA
Abstract: Labor plays an important role in functioning of economy. From an enterprise perspective, it represents a cost (labor cost) that includes not only wages and salaries paid to employees, but also indirect labor costs - mainly social security contributions paid by employer. Therefore, labor is a key factor in competitiveness of enterprises, although it is also influenced by cost of capital (for example, interest on loans and dividends on equity) and from non-price elements such as entrepreneurship, skills and productivity, innovation and positioning. brand / products on market. Labor costs are formed by wage and salary costs plus indirect labor costs, such as employers' social security contributions. Over last 10 years, improvements in EU labor market have continued at a steady pace. Employment plays a fundamental role in every society. People are often determined and define themselves by what they do. Employment is called the glue that holds our society together. The number of employees in Eurozone and across Union already exceeds pre-crisis levels, Eurostat data show. The statistics show a sharp decline in employment at end of 2008, which then continues with varying intensity for 4 years, and at end of 2013 begins a rapid recovery - then peak of post-crisis unemployment in Bulgaria. While EU has reached pre-crisis levels already in 2016, this process has been slower in Eurozone, whose labor market has been outperforming since 2008. A number of sociological and economic surveys highlight fact that employment is not only main source of social status in any country, but it is also important in securing purpose, income, social security, structure and instruments for participation in society. Market incentives to increase investment in education and professional development may play a specific role in mitigating increasing inequality between working capacity and pay and resulting potential poverty. If people are hired, they are less likely to be poor.
Publication Year: 2020
Publication Date: 2020-03-13
Language: en
Type: article
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