ABSTRACT
In contrast to Western countries, which were facing unemployment already for a long period of time, the socialist countries suffered from labor shortages. In view of the envisaged transition from the centrally planned to a market economy the emergence of open unemployment will be unavoidable for the countries of East Europe. New employment possibilities will also be created in some specific public services - such as the labor market administration, health and social care -, furthermore in banking, construction industry and in communications. At the beginning of 1989 Hungary introduced unemployment benefits, financed out of the Employment Fund under the jurisdiction of the Ministry of Labor. In Poland the labor market has been much affected by the government’s stabilization program in pursuit of a restrictive monetary and fiscal policy. Compared with social expenditure in the countries of West Europe, the amount of US$ 150 mn provided for in Yugoslavia’s federal budget must be considered wellnigh insignificant.
