ABSTRACT
The employment situation in industrialized countries has developed in widely differing ways. In several countries employment has increased and unemployment has fallen sharply, while in others unemployment has remained high. The unsatisfactory employment situation in the European Union reached a nadir during the mid-1990s, with an overall unemployment rate of 11 percent. When considering the situation in the industrialized countries one must examine not only changes in overall employment levels, but also the structure of employment, which is also undergoing change. A combination of social protection for the unemployed and participation in a labor market policy scheme facilitates social acceptance of this “labor market flexibility.” A labor market is a typical example of a “seekers’ market,” where uncertainty prevails on both sides of the market regarding the information available. Labor market policies could be envisaged as a necessary element of support for a job-creation strategy inasmuch as through active measures it conserves, builds up or adapts human capital.
