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Labor policy is political acting of a state or a confederation of states and its job market-oriented institutions, in order to improve and/or make the situation possible of the employees in the job market and the entrance from work-willing to the acquisition work.

Active labor policy

Contrary to the passive labor policy - the disbursement of wage compensations - the active labor policy is aligned to the reintegration into a gainful employment. For Germany "§ 3 (the active work promotion defines 4) SGB III as all achievements of the work promotion with exception of unemployment pay and unemployment pay II with unemployment, partial unemployment pay and insolvency money. In addition all measures, which undertake the federal agency for work or municipalities, belong around humans again in work to bring like e.g. switching, measures for further education (FbW), training measures (TM) and work-providing measures (ABM).

Thus on the one hand the qualification and thus the switching chance of the unemployed persons are to be increased. On the other hand these are to be accustomed the work and a regulated routine of the day. For third you serve control the operational shank. Beyond that stands in particular ABM in the call to serve calming the voters.

In principle active labor policy can pursue two goals:

  1. Reduction of unemployment
  2. Social reconciliation

While with 1. the creation of additional jobs is the center of attention, it is with 2. the Reintegration of "groups of problems" like long-term unemployed people and young and/or old work-looking for. Both goals can not collapse, do not have however. So a measure can achieve also then a social reconciliation, if unemployment is only differently distributed, depletion effects in purchase to be thus taken.

History of the active labor policy

The use of workers by the state for the prevention of social unrests is just as old as the problem of unemployment. On a large scale active labor policy became in 20. Century assigned. In particular after the large world economic crisis into the 1920er years one tried to against-steer unemployment by large-scale ABM projects. Thus in the context of the new Deal in the USA numerous dams and roads were established.

Also in Germany and Austria the government started several ABM. After the seizure of power by the national socialists in the year 1933 in Germany almost surface covering large projects were started for provision of work, for example the first (likewise already during the Weimar Republic planned) motorways. The employment was at first forbidden by machines, in order to be able to employ as much as possible personnel. Many concerning describe the situation on the building sites however as bad with long work times and wages on social welfare assistance level.

Labor policy for the 1960er years

In the measure, like itself unemployment in the second 20. Century increasingly solidified, tried in particular the European governments to accommodate unemployed persons in nationally subsidized occupation programs (so-called second job market). In Germany particularly in work-providing measures (ABM). A goal of these programs was it primarily to lead back in particular long-term unemployed person again into the business life to accustom (e.g. to a eight hours' working day), to mediate to them that they implement a meaningful work and to them also qualifications to mediate.

Also qualifying measures have the latter as a goal. However these measures, particularly in the new Lands of the Federal Republic, became frequently a pure occupation therapy, while the chances of the unemployed persons were hardly improved.

Problems of the labor policy

In the past years the active labor policy is increasingly come into the criticism. This is connected on the one hand with ever more scarcely becoming public means, on the other hand with a general lack on jobs. The overall economic problem of unemployment can hardly be reduced in this situation by active job market politics, to be displaced or lower remunerated employees others subsidized there. The unemployed persons "exchanged", their total number sinks however not.

Besides measures of the active labor policy must be financed by higher taxes and deliveries. Neoclassically economists and employers' associations oriented in particular consider these altogether more harmful than the use of the active labor policy. They see an interference of the state in it into the free-market economy.

Trade unions and keynesianisch oriented economists face the active labor policy predominantly against it posititv. Criticism is expressed by them particularly at the employment from active labor policy to the "examination of the availability" to work (Bereichtschaft). They fear that by a too high pressure on unemployed persons a downward spiral begins with the wages. This can lead to deflation and to a break-down of the overall economic demand.

Altogether a clear decrease of the means spent on active labor policy is to be registered in the past years. 2004 were not called up by the agencies for work a large part of the means the available, since the means could not have been used meaningfully.

Strategy change

Due to these experiences the policy tries today to fight unemployment thereby that it diminishes on the one hand on the job market, on the other hand by growth politics a developing of new jobs promotes, and thirdly takes unemployed persons more strongly into the obligation, around work to strive (in euro-jobs).

Active labor policy applies therefore today primarily only to the integration special circles of acquaintances as important. For example during the further training qualification or with long-term unemployed people and older ones, little in demand by unemployed persons without or with. There above all labour costs subsidies are to make an integration possible. A well-known example is that Hamburg models to integration of long-term unemployed people.

Passive labor policy

The "passive" labor policy regulates the compensatory achievements for due to unemployment. The "active" labor policy - differentiated after social groups, regions, enterprises or industries - the measures for the influence of the relations between the offer and the demand on and between over and in-plant job market labor policy in the broader sense is aligned to steer the worker offer and the worker demand as well as the relations between both sizes overallally economic thus without purposeful differentiation e.g. after enterprise, branch of industry or region.

Instruments of the labor policy

  • Payment of unemployment pay, unemployment relief and bankruptcy loss money with existing unemployment
  • Payment of part time staff budget with temporary unemployment
  • Payment of Vorruhestandgeld and age retirement pension on overloading of the job market (freely becoming jobs can be again-occupied

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