Scholarly article on topic 'An Analysis of Unemployment due to Number of University Graduates in the Slovak Republic'

An Analysis of Unemployment due to Number of University Graduates in the Slovak Republic Academic research paper on "Economics and business"

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Abstract of research paper on Economics and business, author of scientific article — Bystrík Nemček, Iveta Kremeňová, Juraj Fabuš

Abstract The article is dedicated to situation of young people entering labour market which is too complicated nowadays. The article also deals with interpreting the statistical results about unemployment of university graduates and shows the duration of graduate unemployment in particular periods. The next part of the article shows the number of births in a population in a certain amount of time. These numbers are compared to the number of public university graduates in last years. The main aim of the paper is to analyse certain available statistical data due to unemployment and demographic development and interpret them.

Academic research paper on topic "An Analysis of Unemployment due to Number of University Graduates in the Slovak Republic"

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Procedía

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ELSEVIER Procedía - Social and Behavioral Sciences 174 (2015) 2395 - 2400

Social and Behavioral Sciences

INTE 2014

An analysis of unemployment due to number of university graduates

in the Slovak republic

a University ofZilina in Zilina, The faculty of operation and economics of transport and communications, Depa rtment of communications,

Univerzitnâ 1, 010 26 Zilina, Slovakia b University ofZilina in Zilina, The faculty of operation and economics of transport and communications, Department of communications,

Univerzitnâ 1, 010 26 Zilina, Slovakia b University ofZilina in Zilina, The faculty of operation and economics of transport and communications, Department of communications,

Univerzitnâ 1, 010 26 Zilina, Slovakia

The article is dedicated to situation of young people entering labour market which is too complicated nowadays. The article also deals with interpreting the statistical results about unemployment of university graduates and shows the duration of graduate unemployment in particular periods. The next part of the article shows the number of births in a population in a certain amount of time. These numbers are compared to the number of public university graduates in last years. The main aim of the paper is to analyse certain available statistical data due to unemployment and demographic development and interpret them.

© 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license

(http://creativecommons.Org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of the Sakarya University

Keywords .Unemployment; university, graduates; labour market

* Corresponding author. Tel.: 041/5133100; fax: 041/5655615. E-mail address: nemcek@fpedas.uniza.sk

1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license

(http://creativecommons.org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of the Sakarya University

doi:10.1016/j.sbspro.2015.01.907

Bystrík Nemceka Iveta Kremeñováb Juraj F abus0 *

Abstract

1. Introduction

In general, unemployment is very difficult issue for whole society. Despite of a few positive trends in unemployment development, it is still difficult problem from the economic and social point of view in Slovakia. Nowadays we can see an increasing trend in young people to maximizing the level of their education. The raising of population's education level is important impact for policy of most European countries and the result of that is continually increasing number of university graduates. Of course there is no doubt why it should be wrong. But we can see this fact also from the other side, from side of labor market.

The labour market success of university graduates is considered as one of the most serious system problem and it has strategic importance for continuous development of education and also for efficiency of economic development. This implies that problem of using educational attainment, unemployment and also other aspects of this problem have cross-resort character and the influence of Ministry of education on solving them is significant.

Creating feed-back between universities, government, labour market and business environment is necessary also in term of coherence between student preparation, future graduates of certain universities with actual needs and requirements of national economy.

2. Situation in the Slovak republic - development of demography and university graduates

2.1. Analysis of statistical data - demographics, university graduates

In the table 1 we can see the number of births during the period 1979-1989 in the Slovak republic. The table and the figure show that the number of births has decreased trend. In table 2 we can see the number of graduates on public universities. As we can see for example in 2003 the number of graduates on public universities was only 17868. In 2013 the number was 37348. During 10 years the number increased more than twice. Now we can conclude that with decreasing number of births the development of graduates on public universities in Slovak republic has increasing trend.

Table l.The number of births in certain years

in the Slovak republic_

The number of

1989 80116

1988 83242

1987 84006

1986 87138

1985 90155

1984 90843

1983 92053

1982 92618

1981 93290

1980 95100

1979 100240

Table 2.The graduates development on public universities in the Slovak republic_

Year The number of graduates

2013 37348

2012 38367

2011 40158

2010 41843

2009 41187

2008 34431

2007 23990

2006 20628

2005 20762

2004 19134

2003 17868

Now we compare these numbers to find out what percentage of population year has graduated on public universities in the Slovak republic. To certain years in table 1 we assign the certain data from table 2. For example we consider that in 2013 graduated people who were born in 1989. As we can see in Figure 1 and Figure 2 the number of births had decreased character in years 1979 - 1989. But the most important fact for us is that the number of public university graduates continually increased. The largest increase of students who has graduated from the

Bystrik Nemcek et al. /Procedia - Social andBehavioral Sciences 174 (2015) 2395 - 2400 public universities was between years 2007 and 2008 when the number increased from 23 990 to 34 431.

105000 100000 95000 90000 85000 80000 75000

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

Fig. 1. The number of births in Slovak republic in certain years

According to the figure 3 it is clear that from 2003 rapidly increased percentage of public university graduates. This fact is bewildering mainly because many of graduates can't find job after finishing the university. There are many causes why we have to face this situation. These are some of them:

• Financing of higher education.

• The number of public universities in the Slovak republic.

• Structure of study programmes.

• Low continuity with business environment.

Fig. 2. The development of graduates on public universities in Slovak republic in last 10 years

-Percentage

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fig. 3. The development of number graduates on public universities according to population year.

2.2. Unemployment of young people

It is necessary to say that the increase of young people on labour market today is rapidly lower than it was for example in 1993 or 1994. So let's look on an unemployment situation and compare two periods. The period of years before 20 years and nowadays. The level of unemployment is relatively same in both of periods. This fact is shocking because if the increase of young people on labour market today was the same as it was before 20-25 years we had to face the rapidly higher unemployment approaching to 25 % as we can see in certain countries of European union for example Greece, Italy, Spain. In these countries was demography of 90 ' s years completely different. When we are talking about demography, very important fact is that Slovakia and Greece have the worst demography in crisis according to the statistics of Eurostat.

The EU is trying to reduce youth unemployment and to increase the youth-employment rate in line with the EU target wider of achieving a 75% employment rate for the working-age population (20-64 years). Youth unemployment across the European Union remains unacceptably high, to the detriment of current and future generations. Addressing it requires understanding its causes and then relentlessly pursuing solutions. The problem of youth unemployment in the European Union is not new. Youth unemployment has been double or even triple the rate of general unemployment in Europe for the last 20 years. The events of the past few years have dramatically exacerbated it, however: 5.6 million young people are unemployed across Europe, and a total of 7.5 million are neither being educated nor are they working. Moreover, while young people are eager to work, more than half of those without jobs say they simply can't find one—all while businesses across Europe insist they struggle to find young people with the skills they need.

2.3. Development of an unemployment in the Slovak republic

Todays the pool of unemployed graduates is rising to worrying levels in the region generally - and even in some high-growth economies. Of particular concern is whether high graduate unemployment is a temporary blip or reflects a chronic oversupply of graduates, even as many employers say they cannot find people with the right skills.

Slovakia suffers from one of the highest youth unemployment rates in the European Union. In order to address the problem, the cabinet of Prime Minister Robert Fico has responded to an initiative launched by EC President José Manuel Barroso and proposed to re-allocate EU structural funds away from programs such as IT and education and towards tackling youth unemployment and boosting economic growth. The plan has attracted criticism from the opposition, which is calling for a more systematic solution.

States should secure school-to-work transitions for young people and develop and implement Youth Guarantee schemes. Currently, more than one in five young people available for the labour market cannot find a job. Many of them may decide to prolong or return to studying and to invest in their future employ ability. There is also a large number of young people neither working nor studying. Being unemployed at a young age has a long-lasting negative impact, a 'scarring effect'. Young people might be trapped in the lower end of the labour market, with less on-the-job training, lower wage levels and weaker long-term employment and career prospects, consequently experiencing long spells of joblessness and facing a high risk of exclusion. Young people aged 25-29 with higher education also find it harder to access jobs in line with their qualifications. Although the low-skilled overall still face the highest risk of unemployment, the young highly skilled have suffered the biggest drop in employment.

Slovakia has one of the highest youth unemployment rates in the EU. It serves as an example of a country where half-hearted measures have failed in the absence of a proper active labour market strategy to channel the young into meaningful jobs. Unemployment is a big problem for the economy. Not only is it a severe personal blow to those concerned, but it is also an economic waste. Slovakia needs the solutions which could manage the status of graduates on labour market. One of another problem that we are facing now is leaving our country by graduates which could not find a job. They leave and try to find job in other countries of European Union, in countries where they have more opportunities and better conditions. And finally they don't want to come back.

Grant support

This contribution was undertaken, as parts of the research projects: VEGA 1/0748/14 - Research methods of the organisation project aims financing in a competitive environment and KEGA 052ZU-4/2012 On-line learning management in the process of ICT education

References

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educationtoemploymentineurope Youth employment - Available from http://ec.europa.eu/social/main.jsp?catld=1036

Rising unemployment - Are there too many graduates? Available from http://www.universityworldnews.com/article.php7story =20140213153927383

Cabinet re-allocates €295 million of EU funds Available from http://spectator.sme.sk/articles/view/46411