Crisis invades labor market

The present global financial crisis together with reduction in the economic indices throughout the world considerably affected the labor market. Due to the financial crisis, the companies both in the USA, Europe and in the CIS countries need not only to freeze the projects, but also to reduce expenditures for personnel. Many companies already ceased to employ new workers and try to optimize the personnel.

The reduction of personnel and production for the optimization of business under the conditions of deficiency in the credit resources began in the developing companies, retail, industry. The financial sector most strongly suffered. The number of resume of financial workers placed in the Internet increased almost by 60%. Everybody from the personal assistants to the director generals look for jobs. And it is only the beginning: if the crisis prolongs, mass dismissals will threaten many spheres, which in recent years grew on the credits.

Thus, "the zone of risk" of the reductions in stuffs can include firstly all those, who are connected with servicing of financial system, banks, consulting and investment companies. In the real sector of economy - this is mainly construction firms. They have long production process, which requires constant financial support. Problems can appear for the large agro-industrial holdings, which work in the real market conditions. It will also affect the machine building.

Consequently, the high unemployment rate in the countries ran upward, and this tendency will be continuing under the conditions of crisis. Thus, due to reduction of the number of workplaces in the USA in September, the unemployment rate grew to the 5-year maximum. According to the data by the labor department, the number of workplaces fell by 84,000 in September in Washington, while 58,000 additional reductions in the previous two months. The unemployment rate in the USA sharply grew to 6.1%, - maximum since September 2003. One month ago this index was 5.7%. The number of workplaces in the USA has decreased already for seven months and since the beginning of this year the economy of the USA has lost 463,000 workplaces.

According to the date by the national statistical bureau in London, the unemployment in the country reached the maximum level in last two years. The number of jobless claims in September grew by 31800 (lower than the expected 36000) and reached 939,900. The unemployment rate, calculated on the ILO standards, within the same period grew from 5.5% to 5.7%.

The unemployment rate also grows in Italy. According to the Istat official statistical agency of Italy, the unemployment rate in the country grew by 0.2% and was 6.7% as compared to the first quarter of 2008.

Unemployment in Spain grew in September by 3.7% as compared to August and today composes 2.6mln people. The unemployment rate in Spain is the highest in the European Union, which grew to 11.3% of labor force, while the average index on the European Union was - 6.9%.

Thus, the unemployment rate in the Euro-zone was 7.5%, whereas already in August this year it reached 7.4%.

However, in Azerbaijan the government continues ardent fight against the unemployment, opening new workplaces and conducting labor fairs in the entire republic. And therefore, the tendency of reductions is observed in the officially registered unemployed, whose number in January - September 2008 reduced by 11.4% as compared to the same period of last year.

However, it is possible that in the near future Azerbaijan enterprises, which established their production activity due to the bank credits, can face difficulties in the previous regime to continue work and fulfill obligations before the suppliers and their colleagues under the conditions of problems with the liquidity in banks. Delays are possible in the wage payments, as this occurs already in Russia.

According to data by the Russian statistics, due to the tendency with an increase in the problems in enterprises, nearly 200,000 people or 1% of those being employed in the enterprises faced the delays in the wages.

Also the crisis inconsiderably affected the unemployment in Russia. Small reduction is observed in the number of the vacancies as a result of September: in Moscow - by 1.57%, while in Saint Petersburg - 1.92%.

The unemployment rate in Russia is today 5.3%.

The wave of reductions, caused by the economic crisis and which already affected many countries of world, will not stop soon. Thus, no one can predict what percentage of population can be dismissed in 2008-2009. According to the International Labor Organization, due to the consequences of global financial crisis and economic recession, this year can become critical for the employment market and the number of unemployed in the world this year will grow by 5mln people.

Now it is very important to attentively examine the crisis situation in the world labor market, which completely can be reflected also in the Azerbaijan economy in the next months and years. Today Azerbaijan banks take energetic measures in order to satiate banking system with liquidity. And it is desirable to hope that they will be sufficiently effective and the finances being allocated will reach the smallest enterprise.

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