The Labor market
What is the labor market?
The labor market is the place where workers compete for paying jobs and employers compete for willing workers. Also in the labor market the wage rates are determined. The market can be local, national or international. The total labor market is divided in smaller, interacting labor markets for different qualifications, skills and locations. The market depends on information about wage rates, conditions of employment, level of competition and job locations exchanged by employers and job seekers.
What are the ways to approach the labor market?
With this approach it’s all about the production process. A company wants to have the lowest possible cost, but the highest possible and most efficient possible production process. So what they want is less cost more benefits/productivity.
Social approach: With a social approach the social security for the employee is more looked at and of higher importance. With the social approach, minimum working conditions and participation within an organization is looked at. A recruitment and selection worker will look at the different points mentioned above while analyzing the job. The social security for the future employee is very important and should be considered before offering the job to someone.
Institutional approach: With this approach the balance between employer and employee is of high importance. To keep this balance there are institutions like government and unions.
The DESTEP – model
While investigating and inventorying the labor marker we look at different factors. The factors being looked at are factors that directly influence the labor market. Using the destep-model can help a recruitment and selection worker, it can help to analyze the labor market, using the different factors as guidelines.
These are the factors that influence the labor market:
To analyze the demographic variable we can use the following points:
Recent studies (C.B.S. and Judicial explorations) show that aging of the society will be one of the biggest influences on the labor market. The aging of society will cause lots of job opportunities that can’t possibly be all filled with the right person for the job. This results in an unfair relation between employer and employee. The employee will be in a position where he/she can demand more than he could in the past for the same job. In time the society of the Netherlands will go from a knowledge society to a care society. (Meaning: Most of the money will be earned by caring for others, like the care of elderly.)
Another demographic factor that will influence the development of the labor market is immigrants that come to the country to work. This will slightly reduce the problem of aging population in the society but the problem of aging will still remain. The good thing of the immigrants is they are willing to work and won’t demand too much.
Demographic Factors & Recruitment and Selection
As demographics factors are intimately related to human beings, i.e. employees, these have profound influence on the recruitment process.
What does a recruitment and selection worker has to do with this factor?
Well, as mentioned above one of the influences is that a lot of immigrants come in the country and want to work here. The people at an integration office that deal with the recruitment and selection process will offer the immigrants courses and assessments so they can later on ‘put’ them in the labor market as...