Dana Paľová,

Technical University of Košice, Slovakia

E-mail: dana.palova@tuke.sk

ORCID:0000-0002-1515-3507

Analysis of Employment in EU According to Europe 2020 Strategy Targets

Martin Vejačka,

Technical University of Košice, Slovakia

E-mail: martin.vejacka@tuke.sk

ORCID:0000-0002-9761-7597

Abstract. Unemployment is a long-term problem in many countries worldwide, including European Union. Decreasing unemployment rate has become one of the EU development priorities declared in the Europe 2020 Strategy. Therefore, national policies in this area are coordinated and supported through funding on modernization of education systems, easier access to work, free movement of labor within the EU and support for handicapped people. One of the main objectives of the Europe 2020 Strategy is to achieve a 75% employment rate for the population aged 24-60. The aim of this contribution is to analyze and evaluate the success in achieving this target by the individual EU Member States. Effects of the selected factors on the employment level are also analyzed. The panel data for the period 2004 to 2016 and all EU countries divided into two clusters has been used. The results show the positive impact of gross domestic product growth and average gross earnings on employment growth. Also, a negative impact of remittances on employment was detected confirming the neoclassical view that received payments are deterring people from the willingness to work.

Received: December, 2017

1st Revision: March, 2018

Accepted: July, 2018

DOI: 10.14254/2071-789X.2018/11-3/6

JEL Classification: J21, J24, C23, F16

Keywords: employment, Europe 2020 targets, trade openness, remittances, economic growth, foreign direct investment, average gross earnings