The myths and realities of structural change in the UK labour market

Recent discussion of developments within the UK labour market has highlighted the growth of more 'flexible' types of employment: part-time work, temporary jobs, and self-employment. The structure of employment has also been shifting – away from manufacturing and manual employment and towards the service sector and non-manual employment. In this article, Peter Robinson argues that these are not new developments and in some respects the pace of structural change in the labour market has slowed down. Together with evidence that the labour market is now adapting successfully to earlier structural changes, this bodes well for the prospect of further gradual reductions in unemployment.     

The Marketization of Local Services and the Fragmentation of Labour Markets

This paper is a product of the ESRC's Local Governance research programme which considers the employment implications of the introduction of market forces into the provision of local government services in the United Kingdom. It discusses the fragmentation of labour markets as both a process and outcome of the commercialization of local service provision. In contrast to privatization scenarios, marketization suggests the blurring of the distinction between public and private employment deriving from the commercialization of municipal services and the transmission of local authority work organization and culture into the private sector. An assessment of employment change, workforce recomposition and bargaining capacity is offered which leads to the development of new models for institutional restructuring. ‘Sectoral de-differentiation’ is a concept developed to address the evolution of new labour market patterns and a ‘public capsule’ model is offered to explain the locality and service variations in marketization outcomes.     

Tackling age discrimination in employment in Singapore

In a country with an ageing work-force, a decline in the number of new entrants to the labour market and an acute labour shortage, it would be reasonable to assume that employers would encourage older workers to remain in employment for as long as possible. In the case of Singapore, however, private sector employers often retired employees at age 55 and hired younger workers in their place. In many cases older workers re-hired had to accept lower pay and lower grade jobs. In an attempt to tackle this sort of age discrimination in employment, the government passed the Retirement Age Act in 1993. Prior to its enactment, the government urged employers to raise the retirement age voluntarily, but the response was poor, especially in the non-unionized sector. This paper argues that employers resisted the extension of the retirement age because they perceived older workers in stereotypical terms. The main issues which gave rise to the Retirement Age legislation are discussed. So also is the possible impact of the legislation on some HRM practices. The paper also proposes some future directions for research on older workers in Singapore.     

THE LABOUR MARKET UNDER 'NEW LABOUR': THE FIRST TWO TERMS

Since 1997, UK labour market regulation has increased significantly, and this trend seems likely to continue. Yet the UK's performance in terms of employment and unemployment has been broadly satisfactory. The author argues that there may have been offsetting factors in both government policy and the macroeconomic climate that have enabled the labour market to function adequately. However, he suggests that this favourable conjunction may not continue.     

A job to believe in: recruitment in the Scottish voluntary sector

The voluntary sector is an important source of employment in the UK and is increasingly providing services previously provided by the public sector. However, the ability of the sector to provide such services is dependent on the quantity and quality of suitable labour. This article examines recruitment issues in seven case‐study voluntary organisations offering social care in Scotland. Interviews were conducted with 137 managers and employees in these organisations. In addition, to assess potential labour supply, interviews and focus groups were conducted with careers advisers and potential employees. The findings suggest that, with a tightening labour market, uncompetitive pay and misconceptions about the sector, recruitment is a problem. However, job satisfaction is high for current employees, and potential employees whose values are commensurate with the sector might be attracted. The findings thus have relevance not just for the case‐study organisations, but for HRM in the voluntary sector generally.     

Understanding Ageing Public Sector Workforces: Demographic challenge or a consequence of public employment policy design?

In all OECD countries, populations and workforces are ageing, with public services generally being older than broader labour markets. Governments are concerned at the looming capacity crisis and identifying policy responses. However, they have generally identified the problem as a simple change in demographics. This article adds a new perspective to this policy debate. Using a study of an Australian state public service, it identifies an association between changes in public employment policies and changes in the workforce age profile. It suggests that current employment policies, which replaced the traditional focus on youth recruitment with a more open public sector labour market, have made it inevitable that public workforces would age and be older than the general labour market. Policy responses to the older public workforce need to go beyond demographic explanations, to accept the older public workforce as the new norm, and align public employment policies accordingly.     

Labour productivity and employment in Australian manufacturing SMEs

This paper examines the relationship between labour productivity and employment in Australian manufacturing small and medium enterprises (SMEs). The results indicate that labour productivity of SMEs varies substantially between industries within the manufacturing sector, but on average labour productivity for manufacturing SMEs increased at a faster rate than that of large manufacturing enterprises across all industries. All manufacturing industries except one recorded employment growth during the period under study. However like labour productivity growth, employment growth also varies across industries within the manufacturing sector. Yet the study could not establish any definite relationship between labour productivity growth and employment. This finding is consistent with some previous studies.     

Mobility,poverty and well-being among the informally employed in Bosnia and Herzegovina

We analyse informal sector employment in Bosnia and Herzegovina (BH), using panel data from the living standards measurement studies. We derive four main conclusions. First, there is significant labour market mobility in BH. Second, those in informal jobs are much more likely to suffer from poverty than formally employed people are. Third, earnings inequality is more pronounced in the informal sector than elsewhere. Fourth, the informally employed report lower levels of life satisfaction compared to most other labour market states. We conclude that, while the informal sector helps people cope, the formal sector provides better prospects for prosperity and well-being.     

Restructuring the public sector: examples from the Swedish School Administration Board

This research note begins with a discussion of recent changes in the Swedish labour market, with special reference to employment changes in the public sector from a gender perspective. These changes are illustrated with a discussion of results from a study of the closing of the National Board of School Administration, an agency with a high proportion of women on its staff. Changes are compared to observations made during the restructuring of the industrial sector. The research note concludes with a short discussion on employment trends for the future, with special reference to the importance of the public sector.     

Intersectoral labour reallocations and unemployment in Italy

The Italian labour market, like most European labour markets and unlike the US, shows a greater cyclical sensitivity of the service sector with respect to manufacturing and firing costs higher than hiring costs. This accounts for the negative relationship between sectoral employment shifts and Italian unemployment in the post-war period and, correspondingly, for the pro-cyclical pattern of the Lilien index, in contrast with the US experience.By applying the Lilien index to the Italian context, this paper analyses the relative importance of sectoral regional and national factors in the explanation of changes in industrial structure, and their impact on unemployment. The econometric exercise illustrates that, given the structural features of the Italian labour market, the decline in intersectoral and interregional labour reallocations has significantly contributed to the increase of unemployment in Italy. New hires, the pull of new sectors, sectoral shifts and regional mobility can keep unemployment down, while at the same time maintaining some of the structural features of the “European model” (high employment security and stability).     

Epidemics,labour markets and unemployment: the impact of SARS on human resource management in the Hong Kong service sector

This article examines the links between epidemics and their economic consequences, specifically in terms of their impacts on labour markets and jobs. To exemplify the above, we examine the effects of SARS (Severe Acute Respiratory Syndrome) on the Hong Kong economy, its labour market and its level of employment and unemployment. The article hypothesizes that the greatest impact would be on human resource management (HRM) in the service industries and on particular sub-sectors, such as the hotel sector. It concludes that the dramatic demand and supply ‘shocks’ significantly affected both the demand for and the supply of labour in the sector, with discernible HRM consequences.     

INSTITUTIONS AND PERFORMANCE IN EUROPEAN LABOUR MARKETS: TAKING A FRESH LOOK AT EVIDENCE

Abstract This paper presents a selective survey of the recent literature on labour market institutions and offers new empirical EU‐based evidence on the impact of labour market reforms on employment and labour market adjustment. Although the literature traditionally treats labour market institutions as exogenous, attention shifted recently towards understanding the underlying causes of specific institutional arrangements. As a consequence, the literature highlights the great importance of an efficient policy design exploiting these interactions wisely and identifies general principles for achieving an efficient policy design at both macro and micro levels. Although empirical evidence does not show a major change in terms of intensity of labour market reform after the setting of the Economic and Monetary Union and the creation of the euro, the reforms aiming at strengthening the labour market attachment of vulnerable groups tend to have been successful both in raising their employment and increasing labour market adjustment.     

Adjusting to the national minimum wage: constraints and incentives to change in six low‐paying sectors

Interest in the national minimum wage (NMW) includes not only its direct impact on employment and wages, but also its indirect impact on organisational performance resulting from a reorientation of employer behaviour with regard to employment practices and product market competition. Drawing on data from small firms in six low‐paying sectors, this article identifies three key constraints that have undermined the possible effect of the NMW in generating a virtuous cycle between employment practices and product market approach. These constraints relate to product market conditions, employer norms and labour market institutions (especially training).     

Public–private sector wage differentials and the business cycle

This paper uses microeconomic data for the period from 1990 to 2004 to examine the relationship between public–private sector wage differentials and labour market conditions in Finland. The results show that the public sector wage premium is strongly counter-cyclical. On average, a 10 percent increase in the local unemployment rate increases the public–private sector wage gap by one percent. Separate analyses by government sector and quantiles of the distribution of wages reveal that it is local government workers and those working at lower skill levels who benefit more from increasing unemployment rate. The paper also exploits the longitudinal structure of the data to examine whether the results are constant over time. These results indicate that the cyclical pattern primarily emerges in years with deteriorated labour markets.     

散杂居城市少数民族就业竞争力与对策研究

本文从少数民族流动人口在散杂居城市中的就业现状出发,将城市就业市场上的企业划分为民族特色企业和一般企业,分别比较了少数民族在两类企业中就业竞争力的差异,并提出解决散杂居城市少数民族劳动者就业问题,应遵循"发展产业、扩充岗位、加强培训、辅助就业"的政策思路.发展民族特色产业,增加少数民族就业机会,并加强语言和技能的培训,增强少数民族就业竞争力,同时,完善为少数民族提供服务的质量,辅助和关怀他们在城市的就业.     

‘What problems you got?’: managerialisation and union organising in the voluntary sector

This article explores how government public service modernisation policies have impacted on management practices and employment conditions in voluntary sector welfare organisations and the problems unions have encountered in responding to such impacts in the context of public service modernisation. The study finds that employees encounter problems developing workplace union organisation and unions face problems developing a coherent strategy on support for the sector and for resisting public sector reform, which hinders trade union resistance. The implications of this may be important in strengthening managerial control over the public service labour process.     

Human resource strategies,workplace reform and industrial restructuring in Australia and New Zealand

In recent years, Australia and New Zealand have pursued two different routes of labour market reform. New Zealand opted for a radical experiment in the deregulation of industrial relations and other areas. Australia pursued a co-operative and co-ordinated approach to reform within the centralized arbitral system. Both reform initiatives were designed to stimulate improvements in organizational performance and cost competitiveness. In this paper, we argue that there are three main types of strategies that management can use to reduce labour cost and improve performance: productivity-enhancement, costminimization and work-intensification strategies. We argue that the former is a long-term sustainable strategy whereas the latter two are negative short-term strategies that may have deleterious longer-term effects. This paper reports the results of a cross-national survey in New Zealand and Australia into the extent of adoption of these management strategies. The results are presented by industry, employment size, mode of operation and countries as a whole. The research findings indicate that New Zealand's decentralization has encouraged a higher degree of employer experimentation with both positive and negative workplace change strategies, especially in the private sector. Australia's more centralized system limited the use of cost-minimization strategies but not productivity-enhancing strategies in the public and not-for-profit sector. The research found evidence of work intensification in both countries.     

LABOUR DEMAND IN GERMANY BY INDUSTRIAL SECTOR,OCCUPATIONAL FIELD AND QUALIFICATION UNTIL 2025 – MODEL CALCULATIONS USING THE IAB/INFORGE MODEL

By means of a trend extrapolation of microcensus structures (undertaken by the German Federal Statistical Office) for the time period 1996–2007, the projections for labour demand by industrial sector which the IAB already has at its disposal can be transferred to demand by occupational field and subsequently by qualification level until 2025. The findings which have been claimed for some time now are upheld: production-related occupations will lose in significance, while further increases in employment particularly in occupations in the service sector are to be expected. Accordingly, the demand for personnel with a degree from a university or a university of applied sciences will go on rising, while the labour market opportunities for unskilled workers will continue to fall. However, vocational training or its academic counterparts still remain the dominant form of training in Germany. A continuing employment trend is to be expected here.     

The impact of equity markets and corporate governance on labour market flexibility

Drawing from various literatures, this article explores links between equity markets and labour market flexibility. Various data sources are used to test relationships for a set of OECD countries, controlling for other likely influences on flexibility such as government and industrial relations institutions. The results are generally supportive as regards employment flexibility: equity market trading activity is associated with shorter job tenure, higher activity rates, and greater employment change over the cycle. However, the relationship between equity markets and pay flexibility is less statistically robust to the addition of controls.     

Mělée on the Mersey: contracts,competition and labour relations on the docks

Although strikes on the waterfront are now rare, the Liverpool dock dispute is indicative of how deregulation of the dockland labour market has compelled operators to cut ever more deeply into labour costs, and casualise the employment relationship. This has had an adverse effect on port performance and undermines the ability of employers to compete effectively.