Dependence between Labour Market and Economic Cycles
Keywords: labour market, economic cycles, European Union
AbstractThe article discusses theoretical and practical aspects of labour market and economic cycles. According to the collected theoretical and practical data, the analysis of the concepts of labour market, economic cycles is carried out, and the assessment of dependence between the labour market and economic cycles in the EU countries is done in this paper. The main problem of this article is that so far labour market and economic cycles are being analyzed as separate subjects, without emphasizing common points, and the links between indicators reflecting economy’s cyclicity and indicators of unemployment are not found. This paper aims to explore the dependence between labour market and economic cycles, as well as to do the research of the EU labour market indicators operating in economic cycles. According to the created test model of economic cycles and unemployment rate dependence analysis the change of the EU labour market indicators in economic cycles was examined. The aim was to investigate the level of indicators’ contra cyclicity from different aspects. The theory of economic cycles and labour market theory, as well as the theory of unemployment can be linked and viewed as closely related systems of indicators. Therefore, the analysis of the indicators of these separate spheres is necessary in order to balance the labour market and at the same time economy in changing economic cycles. Thus it is important to investigate the dependence of indicators and their possible values. In order to investigate the dependence between unemployment rate and GDP, the quantitative research method was used – correlation regression analysis based on the EUROSTAT data. Correlation coefficients were used during the analysis of the dependence between the unemployment and economic cycles.